Palladon Ventures Ltd.
TSX VENTURE : PLL

Palladon Ventures Ltd.

August 02, 2005 17:51 ET

Palladon Ventures Ltd. Announces Contract to Sell One Million Metric Tons of Iron Ore

BROOMFIELD, COLORADO--(CCNMatthews - Aug. 2, 2005) - Palladon Ventures Ltd. (TSX VENTURE:PLL) (the "Company") announced that it has entered into a contract to sell one million metric tons of iron ore over the twelve month period commencing September, 2005 to a Chinese purchaser. Ore will be mined, crushed and magnetically treated from the Comstock/Mountain Lion Iron Project in Utah, transported by rail over the Union Pacific railroad running adjacent to the mine, and loaded on the customer's ships at the port in Richmond, California for shipment to Chinese ports. Palladon is making final arrangements with its mining contractor, Gilbert Engineering, to commence mining and treatment of ores in August, and with the railroad and port, to commence shipment as soon as possible thereafter.

The contract provides for standard commercial terms including the posting of a letter of credit by the customer, and pricing is in line with the current strong market for iron ores in China. Specific pricing terms of the contract have not been disclosed at this time, pending additional negotiations on other supply contracts being discussed. Based on mining and treatment costs and the quoted costs for shipping and handling, Palladon expects to generate substantial cash flow from the contract.

Palladon President George Young said, "The sales contract represents a significant step for the Company. Revenues from this contract will help strengthen our balance sheet, and in turn will enable us to advance with feasibility work on the iron project in evaluating other avenues of development. We will also be better enabled to continue with our exploration and development work at the Western Utah Copper District and on our gold projects in Nevada and Argentina."

ON BEHALF OF THE BOARD OF DIRECTORS OF PALLADON VENTURES LTD.

George S. Young, President, Director


The TSX Venture Exchange has not reviewed and does not take responsibility for the adequacy or accuracy of the contents hereof.

Contact Information