PERTH (miningweekly.com) – ASX-listed Symbol Mining has inked an offtake and marketing agreement with Noble Resources International for its Macy zinc project, in Nigeria.
The offtake and marketing agreement also secured the final funding requirements for the development of the Macy project, with a short-term $3-million loan facility.
Under the agreement, the joint venture (JV) partners have granted Noble partial rights to purchase or market product for the life of any mines owned and operated by the partners, incorporating provisions and commercial terms and conditions typical of such an agreement.
The $3-million loan facility will have a 12-month term, and grants Noble increased offtake rights for the term of the facility.
Mining recently started at the Macy project, following the approval of the mining lease, and the project is expected to generate strong cash flow after a short development period.
Symbol CEO Tim Wither said that the execution of the offtake agreement, and securing the final funding requirements for Macy, demonstrated the continued support of the company’s strategy of securing early high margin cash flow from the Imperial JV, aggressive exploration of future resources, and expanding the current asset portfolio across Nigeria.
“We are very pleased to secure the final funding requirements for Macy as well as executing the offtake and marketing agreement with Noble, which is a highly experienced offtake partner, and allows us to leverage on Noble’s strong and established customer base,” Wither said.
Macy is the first industrial scale mining operation in Nigeria for several years, and first shipment of high-grade zinc and lead product is expected by the end of the third quarter.
The project could produce 38 100 t of shippable product and 6 950 to of mixed product over an initial mine life of 12 months, generating some A$20.3-million in free cash flow.