AIS arranges 30,000-tonne-per-month Mn supply

Nov 21, 2019

2019-11-21 10:43 ET – News Release

Mr. Phillip Thomas reports

A.I.S. RESOURCES ARRANGES SUPPLY OF 30,000 TONNES A MONTH OF MANGANESE ORE AND COMMENCES SALE NEGOTIATIONS WITH ERDOS GROUP

AIS Resources Ltd. has arranged supply of 30,000 tonnes a month of manganese ore grading 48 to 52 per cent manganese (Mn) and has commenced sale negotiations with Erdos Group, one of the world’s largest buyers of manganese. AIS has issued a term sheet for a trial shipment of 10,000 tonnes of manganese to Erdos.

Highlights of the AIS Resources transaction:

Erdos Group (Inner Mongolia Eerduosi Resources Co. Ltd.) is active in metals, energy and textiles. It has a current market value of $9.5-billion (U.S.) and operations in Inner Mongolia where most large silicon-manganese producers are located due to the very low cost of power.
AIS will be buying on a free-on-board (FOB) basis and selling CFR to Tianjin, China. Shipping will be out of the Dar es Salaam Port in Tanzania.
The company’s suppliers’ grade is very high, assaying at 52 per cent Mn.
The trial shipment will gross approximately $2-million (U.S.), subject to the final CIQ China assay of the manganese being approximately 50 per cent Mn.
AIS will oversee quality control and assay, shipping and other logistics-related key processes.
Other suppliers have approached AIS about replicating this trading strategy and discussions on supply based on grade have begun.
The payment from Erdos will be by letter of credit of which 95 per cent can be processed 10 days after the ship leaves Dar es Salaam.
Detailed discussions are being held with trade and project financiers to accommodate the payment of shipping and manganese ore.

“The company is pleased to have found suppliers with such high purity of manganese in the 30,000-tonnes-per-month range. This will make a considerable difference to the company’s cash flows when the transaction is completed, which we expect will occur in January,” stated AIS Resources president and chief executive officer Phillip Thomas.

About AIS Resources Ltd.

AIS Resources is a TSX Venture Exchange-listed investment issuer that is managed by experienced, highly qualified professionals who have a long record of success in lithium and manganese trading, exploration, production and capital markets. Through their extensive business and mining networks, they identify and develop projects worldwide that have strong potential for growth with the objective of providing significant returns for shareholders.

We seek Safe Harbor.

https://aisresources.com/