Prosperity Minerals has secured 800,000 tonnes of iron ore, under its off-take agreement with Blackrock Metals of Canada. It initially signed the off take deal with Blackrock back in January. Last week a pre feasibility study confirmed that Blackrock has 252.4 million tonnes in estimated measured and indicated resources, grading 25.6% Iron.

The study has now been received and accepted by the Industrial & Commercial Bank of China and Prosperity, as set out in the earlier agreement.

Prosperity has now drawn-down US$8 million from ICBC and it has applied the same amount as a deposit to Blackrock.

Under the terms of the off-take deal Blackrock will ship processed iron ore with on average 60 percent iron to Prosperity.

Earlier this month it agreed a separate off-take deal with another Canadian mining firm. It signed the deal for one million tonnes of iron ore with Century Holdings, which indirectly owns three projects in Canada.

Prosperity was granted an option to purchase the iron ore over a three year period which is expected to commence in the company's fiscal year 2011-12. The option can be exercised at any time.

Under the terms of the agreement, PMMC has agreed to make a prepayment of USD 10 million to secure 1 million tonnes of processed iron ore with a minimum 60 percent Fe (iron) content, which may be drawn by Century Holdings at any time.

(Sourced from www.proactiveinvestors)