Globe Metals Enters Agreement with Myst Trading for Kanyika…

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. The agreement includes purchasing significant amounts of tantalum and niobium pentoxide, marking the project’s second offtake agreement. Both companies aim to establish a binding agreement by mid-2025 to ensure production aligns with market conditions and funding strategies.

Globe Metals & Mining has entered into a non-binding memorandum of understanding (MOU) with Myst Trading concerning the offtake of initial production from the Kanyika Niobium Project in Malawi. This MOU entails the purchase of 14 tonnes of refined high-purity tantalum pentoxide and 76 tonnes of refined high-purity niobium pentoxide, establishing a framework for negotiating a binding agreement for this phase of production.

The agreement grants Myst Trading the right to purchase 100% of the 14 tonnes of refined tantalum pentoxide, alongside a right of first refusal for 25% of the estimated annual output of niobium pentoxide. This milestone represents the second offtake agreement for Globe’s Kanyika Niobium Project, situated approximately 55 kilometers north-east of Kasungu, Malawi, under the large-scale mining license LML0216/21, which covers various metals including niobium and tantalum.

With this new agreement, Globe has secured non-binding offtake agreements for 57% of its niobium pentoxide production and 100% of its tantalum pentoxide production from the project’s first phase. The agreement, which will commence with the start of phase one production, sets prices linked to current market trends in Asian metals.

Globe’s CEO, Paul Smith, stated that this MOU signals substantial progress in finalizing offtake agreements crucial for funding and development. Following a previous agreement with Affilips N.V., this partnership with Myst aims to leverage lucrative Asian markets while bolstering Globe’s updated bankable feasibility study and subsequent funding endeavors.

Both Globe and Myst anticipate finalizing a binding offtake agreement by the second quarter of 2025, with full arrangements expected by September 1, 2025. Additionally, last June, Globe secured an at-the-market equity facility with Long State Investments for up to $20 million over two years to propel the Kanyika Niobium Project forward.

In conclusion, Globe Metals & Mining’s recent MOU with Myst Trading for the Kanyika Niobium Project is a critical step in securing offtake agreements for production. This non-binding agreement not only emphasizes the project’s viability and anticipated completion but also positions Globe for significant market opportunities in Asia. With a framework for future negotiations established, the companies aim to solidify their partnership by 2025, further supporting the project’s financial requirements and development.

Original Source: www.mining-technology.com