MHM has been placed in trading halt this morning. The company requested the halt “pending finalisation of a US processing contract.”
This is very important news as it confirms our expansion into the US. At the end of the day we knew it was coming, it was just a matter of time.
The announcement goes on to say that the company expects to release the news prior to the commencement of trading on Monday, 7 November 2011.
The announcement will obviously be well received by the market, but I will be looking for two key things in particular:
1. Supply for 200,000 tonnes p.a. of salt slag as a minimum.
2. That the contract will be a tolling agreement where we get a fee per tonne processed or if we have to take responsibility for selling all or part of the recycled product then I want to see MHM compensated with a larger share of these profits.
I look forward to keeping you all updated on Monday.
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