MULTI-COMMODITY natural resource company Premier African Minerals has completed an offtake agreement with global supply chain portfolio manager Noble Resources International for the sale of wolframite concentrates from the RHA Tungsten Mine, in Matabeleland North, which is expected to enter commercial production in June.
Premier would supply Noble with 500 tonnes of concentrate over an initial six-month period, after which Noble would have a right of first refusal of all future concentrates produced.
Pricing for concentrates would be based on a discount to the price published by the Metal Bulletin for European ammonium paratungstate — the most recent of which was $292,50 per tonne.
Concentrates would be sold in tonnes, where one tonne was equal to 10kg of tungsten trioxide (WO3) contained in a concentrate at a declared percentage, normally between 60% and 65%.
Premier expected the open pit phase of the RHA mine to produce some 5 800 t/m of WO3 contained in a concentrate at an average grade of 63%.
Premier chief executive officer George Roach said the completion of the offtake agreement was an essential requirement of its deal with potential debt finance partners.
“At the same time, the terms of the agreement provide some flexibility for Premier to demonstrate quality and consistency of our wolframite concentrates that may result in better terms after an initial six-month period,” he commented.