08:29 AM EST, 11/25/2024 (MT Newswires) -- Strategic Resources said (SR.V) Monday that it signed iron ore supply and offtake agreements with Javelin Global Commodities (SG) PTE, a subsidiary of Javelin Global Commodities.

Javelin also agreed to provide a secured working capital facility of up to US$150 million for up to three years to support the operations of Strategic's high purity iron pelletizer facility at Port Saguenay in Quebec.

Under the terms, Strategic will procure four million tonnes of direct reduction (DR) grade iron ore concentrate and sell up to four million tonnes a year of DR grade iron pellets from the facility.

The agreement also includes a ten-year contract from the completion of construction with Strategic having an option to terminate, including the right to terminate after seven years from the commencement of production of the iron ore products.

"Javelin is an outstanding long-term partner to work with given their demonstrated track record in the seaborne iron concentrate and iron pellet markets and provides another major international sponsor for the project," Strategic CEO Sean Cleary said. "The completion of the offtake agreements is a significant milestone for Strategic and puts the company in a position to complete the required next steps over the first three quarters of 2025 as it works towards the start of construction of the high purity iron pellet plant."