Globe Metals & Mining has signed a non-binding MOU with Myst Trading for the offtake of phase one production from the Kanyika Niobium Project in Malawi, including 14 tonnes of tantalum pentoxide and 76 tonnes of niobium pentoxide. Myst will secure significant purchasing rights, aiding Globe’s trajectory towards funding and project development.
Globe Metals & Mining (Globe) has executed a non-binding memorandum of understanding (MOU) with Myst Trading (Myst) pertaining to the offtake of phase one production from the Kanyika Niobium Project in Malawi. The MOU stipulates the purchase of 14 tonnes of refined high-purity tantalum pentoxide and 76 tonnes of refined high-purity niobium pentoxide, establishing a framework for future negotiations on a binding offtake agreement.
Under this agreement, Myst Trading will obtain the right to purchase 100% of the estimated annual production of 14 tonnes of refined high-purity tantalum pentoxide. Furthermore, Myst will have a right of first refusal for 25% of the estimated annual production of 76 tonnes of refined high-purity niobium pentoxide. This marks the second offtake agreement for Globe’s Kanyika Niobium Project, located approximately 55 km north-east of Kasangu, Malawi.
The Kanyika Project is developed under the large-scale mining licence LML0216/21, which allows the extraction of niobium, tantalum, zirconium, and other minor metals. As a result of this agreement, Globe has now secured non-binding offtake agreements for 57% of its niobium pentoxide and 100% of its tantalum pentoxide production from the project’s first phase. The initial three-year period of the agreement begins with the start of phase one production.
Product pricing will be linked to current Asian metals market prices. Globe CEO Paul Smith remarked on the significance of the MOU, stating, “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 added that the agreement opens access to lucrative Asian markets for niobium and tantalum oxides.
Both Globe and Myst aim to cement a binding offtake agreement by the second quarter of 2025, with a complete agreement anticipated by September 1, 2025. Additionally, Globe secured an at-the-market equity facility with Long State Investments, a New York-based firm, providing up to $20 million (A$31.62 million) over two years to enhance the Kanyika Niobium Project.
In summary, Globe Metals & Mining has taken significant steps in progressing its Kanyika Niobium Project through a non-binding MOU with Myst Trading. This agreement lays the groundwork for purchasing refined tantalum and niobium products, ensuring a pathway toward securing funding and finalizing production plans. With anticipated binding agreements and market opportunities in Asia, Globe is poised for continued developments in the mining sector.
Original Source: www.mining-technology.com
