Bocimar International and Fortescue Metals Group (FMG) have agreed to establish a shipping joint venture, with both partners jointly developing existing and future shipping activities.
The deal includes the time chartering of three Bocimar Capesize vessels, two of which will be delivered promptly, the third in mid-2010.
The time charters, which were concluded at market rates include a profit sharing arrangement, are all for a period of ten years. In consideration, Bocimar will receive US$28 million in FMG shares.
The parties have also agreed to terminate two contracts that were concluded in February 2008, which relate to the use of two vessels - one for a ten-year period and one for five years.
In consideration of Bocimar's agreement to terminate these contracts and discontinue arbitration proceedings, FMG has agreed to allot FMG shares to Bocimar for an equivalent value of US$22 million.
The deal includes the time chartering of three Bocimar Capesize vessels, two of which will be delivered promptly, the third in mid-2010.
The time charters, which were concluded at market rates include a profit sharing arrangement, are all for a period of ten years. In consideration, Bocimar will receive US$28 million in FMG shares.
The parties have also agreed to terminate two contracts that were concluded in February 2008, which relate to the use of two vessels - one for a ten-year period and one for five years.
In consideration of Bocimar's agreement to terminate these contracts and discontinue arbitration proceedings, FMG has agreed to allot FMG shares to Bocimar for an equivalent value of US$22 million.