Globe Metals & Mining announces the signing of a non-binding memorandum of understanding (MOU) with Myst Trading Pte Ltd for the purchase of 14 metric tonnes of refined high-purity Tantalum Pentoxide and 76 metric tonnes of refined high-purity Niobium Pentoxide.
The MOU outlines the framework for both parties to negotiate a binding offtake agreementfor the Kanyika Niobium Project Phase 1 production. The Myst MOU also means that Globe has now signed non-binding offtake agreements for 57% of Phase 1 production of Niobium Pentoxide and 100% of Phase 1 production of Tantalum Pentoxide.
Globe’s Chief Executive Officer, Paul Smith, commented:
“The MOU with Myst confirms our significant progress in finalising offtake agreements for all Phase 1 production at the Kanyika Project. Such agreements are a critical component of the Project’s funding and ultimate development. This is the second non-binding agreement signed by Globe, following our agreement with Affilips N.V on Niobium offtake (announced in September 20241).
The Myst MOU gives Globe access to the lucrative Asian markets for Niobium and Tantalum oxides. We look forward to a long relationship with Myst.
The key non-binding agreements will further support the finalisation of our updated bankable feasibility study and associated funding commitments underway. Globe looks forward to announcing very significant Kanyika Project development milestones in the coming months, which will pave the way for the development of this exciting Project.”
Key terms of the MOUThe MOU provides a framework for Globe and Myst to negotiate a binding offtake agreement for:
• the right to purchase 100% of the estimated 14 metric tonnes of refined high-purity Tantalum Pentoxide production from the Project’s total annual Phase 1 production; and
• a right of first refusal to purchase 25% of the estimated 76 metric tonnes of refinedhigh-purity Niobium Pentoxide from the Project’s total annual Phase 1 production. The initial 3-year term of the Agreement will commence from first production of the Phase 1 of the Kanyika Project. The price paid by Myst for the product will be linked to prevailing Asian metals market prices.