Eagle Mountain Corporation has announced that its strategic partner, Shandong Pusheng Petrochemical Co. Ltd has signed an Agreement with the Company forming a joint-venture for oil, gas and petroleum products trading effective immediately. In addition, the parties have signed their first purchase order, a binding contract commitment to purchase light naphtha through the Joint Venture Company. The contract calls for Eagle Mountain to source and negotiate the purchase and delivery of approximately 300,000 metric tons of light naphtha per month for five years. In the last few weeks, the price of light naphtha has been in the range of US$330-380/ton FOB U.S. Gulf Coast.
A subsidiary of Eagle Mountain based in Hong Kong will be joint-ventured 40/60 with a Hong-Kong subsidiary of Shandong Pusheng where the Irrevocable Documentary Letter of Credit (DLC) is established and ready to proceed with the first purchase. Whereas Eagle Mountain is responsible for arranging the purchase and delivery of the naphtha, Shandong Pusheng is responsible for sale of the naphtha into the Southeast Asian markets, in cooperation with China’s state enterprises.