Globe Metals & Mining has signed a non-binding MOU with Myst Trading for the offtake of high-purity tantalum and niobium products from the Kanyika Niobium Project in Malawi. The agreement includes the purchase of 14 tonnes of tantalum pentoxide and 76 tonnes of niobium pentoxide, marking Globe’s second offtake agreement and reflecting progress in securing project funding.
Globe Metals & Mining has entered a non-binding memorandum of understanding (MOU) with Myst Trading regarding the offtake of phase one production from the Kanyika Niobium Project in Malawi. The MOU stipulates the procurement of 14 tonnes of refined high-purity tantalum pentoxide and 76 tonnes of refined high-purity niobium pentoxide, setting the groundwork for negotiations on a binding contract.
Under the agreement, Myst Trading will secure the right to acquire 100% of the anticipated annual supply of tantalum pentoxide and will also be granted the right of first refusal for 25% of the estimated annual output of niobium pentoxide. This marks Globe’s second offtake agreement related to the Kanyika Niobium Project, located approximately 55 km northeast of Kasungu, Malawi.
Globe has now established non-binding offtake agreements covering 57% of niobium pentoxide and 100% of tantalum pentoxide output from the initial phase. The agreement will commence with the start of phase one production and will link product prices to current rates in the Asian metals market.
Globe CEO Paul Smith noted, “The MOU with Myst confirms our significant progress in finalising offtake agreements for all phase one production at the Kanyika Project. Such agreements are a critical component of the project’s funding and ultimate development.” He highlighted the potential of this partnership to facilitate crucial funding commitments and advance the development milestones of the Kanyika Project
The parties aim to finalize a binding offtake agreement by the second quarter of 2025, with expectations of full agreement completion by September 1, 2025. Additionally, Globe secured a $20 million at-the-market equity facility from Long State Investments in June 2022 to support the Kanyika Niobium Project’s advancement.
In summary, Globe Metals has formed an MOU with Myst Trading for the offtake of tantalum and niobium products from the Kanyika Niobium Project. This agreement signals progress in securing funding and advancing the project. With significant production quantities outlined and plans for binding agreements in place, the partnership is poised to enhance Globe’s market position.
Original Source: www.mining-technology.com
