Macarthur Minerals Ltd. struck a 10-year off-take deal with Glencore PLC unit Glencore International AG to supply 4 million tonnes per annum of iron ore produced from the Lake Giles project in Western Australia.

The deal, renewable for another 10 years, is expected to generate about US$4 billion in revenues for Macarthur based on current market prices.

Glencore agreed to release up to 70% of its off-take volume once Macarthur secures project financing from an investor, according to a March 21 release.

Macarthur is in talks with European banks and international financial institutions to secure debt financing for Lake Giles, which comprises the Moonshine magnetite and Ularring hematite iron ore deposits.

The company is looking to raise up to US$6 million for a bankable feasibility study of the two projects.