Palladon's CML Metals signs Iron Mountain offtake deal

2010-06-11 13:27 ET - News Release

Mr. John Cutler reports

PALLADON SHAREHOLDER UPDATE REGARDING CML OFFTAKE AGREEMENT

Palladon Ventures Ltd. has released an update on CML Metals Corp.'s progress to sell and ship iron ore from the Iron Mountain property located near Cedar City, Utah.

CML, formerly known as Palladon Iron Corp., has signed an offtake agreement with China Kingdom International ("CKI") for the shipment of 600,000 dry metric tonnes annually of run-of-mine iron ore to be shipped from the port of Richmond, California. The ore will be ultimately sold to Hebei Iron and Steel ("HBIS"), which is one of the largest steel companies in China. The term of the contract is two years and the parties have agreed to review the price for the run-of-mine product every six months. CML expects to ship its first vessel to CKI by the end July, 2010. After initial shipments begin and CML is comfortable with all logistics, CML believes it will be able to step up production and increase shipments significantly above the base offtake volumes, market conditions permitting.