Globe Metals Signs Offtake Agreement with Myst Trading for Kanyika Project

Globe Metals & Mining has signed a non-binding MOU with Myst Trading for phase one production from the Kanyika Niobium Project, including the sale of refined tantalum and niobium pentoxide. This agreement aims to secure substantial market access while supporting project funding and development, with formal agreements expected by 2025.

Globe Metals & Mining has entered into a non-binding memorandum of understanding (MOU) with Myst Trading for the offtake of phase one production from the Kanyika Niobium Project located in Malawi. The MOU outlines the purchase of 14 tonnes (t) of refined high-purity tantalum pentoxide and 76 tonnes of refined high-purity niobium pentoxide, facilitating negotiations for a binding offtake agreement for the project’s initial phase.

Under the terms of the agreement, Myst Trading will have the right to purchase 100% of the estimated annual production of 14 tonnes of tantalum pentoxide and hold a right of first refusal for 25% of 76 tonnes of niobium pentoxide annually. This marks the second offtake arrangement for the Kanyika Niobium Project, situated approximately 55 kilometers northeast of Kasungu, Malawi.

The Kanyika Niobium Project operates under mining licence LML0216/21, allowing extraction of niobium, tantalum, zirconium, and other metals. Since initiating the project, Globe has secured non-binding offtake agreements accounting for 57% of niobium pentoxide and 100% of tantalum pentoxide production for the project’s first phase, which is set to commence production soon.

The six-month agreement will commence with the start of phase one production, with prices linked to current Asian metals market dynamics. Globe’s Chief Executive Officer, Paul Smith, remarked on the significance of the MOU with Myst, highlighting it as an indicator of progress in securing offtake agreements necessary for project funding and development.

Both parties are working toward executing a binding offtake agreement by the second quarter of 2025, anticipating full finalization by September 1, 2025. In June of last year, Globe Metals established an equity facility with Long State Investments, securing up to $20 million (A$31.62 million) over a two-year term to further advance the Kanyika Niobium Project.

In summary, Globe Metals & Mining’s recent MOU with Myst Trading for the Kanyika Niobium Project marks a significant step in securing offtake agreements essential for the project’s financing and development. With the expectation of formalizing a binding agreement within the next two years, Globe aims to leverage the lucrative Asian markets for its niobium and tantalum production, thereby enhancing project viability and future success.

Original Source: www.mining-technology.com