======================================================================
Re: Press Release - Tuesday, April 01, 2008
Palladon Signs Long-Term Iron Ore Sales Agreement
======================================================================
Salt Lake City, UT, April 1, 2008. Palladon Ventures Ltd. (TSX.V: PLL)
(Frankfurt: PV-1) announces that its private subsidiary, Palladon Iron
Corporation (PIC), has signed a long-term sales agreement with China
Kingdom International Minerals & Metals Co., Ltd (CKI). The recent
commodity price increases have made the sale of run-of-mine iron ore
financially attractive, enabling PIC to contract for the immediate sale
of run-of-mine iron ore, rather than await the financing and
construction of a processing plant.
The five-year contract provides for the purchase by CKI and its
Australian operating subsidiary, China Kingdom International Australia,
of run-of-mine iron ore at an initial annual rate of 2,000,000 metric
tonnes. Pricing is fixed through March 31, 2009, and will adjust for
future annual periods based on changes in the World Benchmark Prices
for iron ore. The contract price is quoted FOB a west coast U.S. port,
with CKI responsible for all ocean-going freight including the
contracting and scheduling of ocean vessels.
The contract price for the initial period exceeds PIC"s anticipated per
ton operating and shipping costs, and the run-of-mine sales are
expected to generate meaningful free cash flow for PIC. PIC estimates
initial capital investment to be less than $5 million, with shipments
expected to commence in the third quarter of this year. PIC is in the
process of finalizing its mining plan and logistics plans for the start
of operations at its Iron Mountain project in southwestern Utah. The
electrical sub-station facility has been installed, grounded, and
charged, and is ready to be connected to the Cedar City power grid.
Mobilization for mining and shipping will begin shortly in anticipation
of the pending shipping dates.
It is anticipated that PIC will reinvest some of the cash flow from the
run-of-mine sales into a formal feasibility study to help finance the
eventual construction of a processing plant on-site. When an iron ore
concentrate processing plant is completed at Iron Mountain, the
agreement with CKI contemplates modification to reflect the new product
and pricing.
Based in Beijing, CKI is one of China"s leading importers of iron ore,
with close ties to major global iron ore producers and Chinese steel
manufacturers.
"We are very excited to be working with CKI. CKI gives us access to
customers and shipping that we could not have achieved on our own, and
we expect CKI will be a great strategic partner for PIC for many years
to come", said Donald G. Foot, Jr., President and CEO of Palladon
Ventures Ltd. "The latest global benchmark pricing increases enable us
to export unprocessed iron ore profitably while we build a processing
plant to produce high-grade iron concentrates. The significant cash
flow generated from this contract should provide for a robust future
for Palladon and our shareholders."
On Behalf of the Board of Directors,
Donald G. Foot, Jr.
President and Chief Executive Officer
About Palladon
Palladon Ventures Ltd. is a junior resource company focused on
redeveloping the Iron Mountain project in Iron County, Utah. Palladon
also holds interests in gold exploration projects in Nevada, Utah and
Argentina.
For Further Information Please Contact:
Hamish Greig
Vice President
Palladon Ventures Ltd.
604-484-7088 Tel
604-484-7044 Fax
Email: info@palladonventures.com
Web: www.palladonventures.com
Frank Dolce
Vice President
Palladon Ventures Ltd.
801-521-5252 Tel
801-521-5454 Fax
frank.dolce@palladoniron.com
www.ironbullmining.com
The TSX Venture Exchange has not reviewed and does not take
responsibility for the adequacy or accuracy of the contents hereof.
======================================================================
Copyright (c) 2008 PALLADON VENTURES LTD. (PLL) All rights reserved.
For more information visit our website at
http://www.palladonventures.com/ or send
mailto:info@palladonventures.com
======================================================================
.
![]()