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Metallica signs logistics solution agreement for Urquhart bauxite project

said April 7 thatit has entered into a heads of agreement with the operator of the Hey Point bauxitemine on Queensland, Australia's western Cape York, assigning the operator to provideshipping access and logistics services for the Urquhart bauxite project.

Under the agreement,direct shipping bauxite from the project just south of Weipa will be delivered toexport vessels through the approved Hey Point load-out facility, located 15 kilometersfrom Urquhart.

The agreement cameafter the completion of an in-house options study which analyzed the viability ofthree potential load-out options for shipping up to 2 million tonnes per annum ofdirect shipping bauxite from the project.

The options studyspecified Hey Point as the preferred option due to its attractive economics, earlyproduction start and low risk profile.

The heads of agreement,which includes attractive, capped contracting rates over the projected life of theproject and access to the Hey Point load-out facility for transshipping bauxite,will be the basis of a full binding service contract and a binding access agreementto be executed by Aug. 31 or on a later date agreed upon by the two parties.