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, covering 14t of tantalum pentoxide and 76t of niobium pentoxide. This is Globe’s second offtake agreement, supporting 57% of niobium and 100% of tantalum production. A binding agreement is expected by Q2 2025.
Globe Metals & Mining (Globe) has established a non-binding memorandum of understanding (MOU) with Myst Trading (Myst) for the offtake of phase one production from the Kanyika Niobium Project in Malawi. The MOU encompasses the acquisition of 14 tonnes (t) of refined high-purity tantalum pentoxide and 76t of refined high-purity niobium pentoxide, laying the groundwork for a future binding offtake agreement.
Myst Trading will gain the rights to procure up to 100% of the estimated annual production of 14t of tantalum pentoxide, alongside a right of first refusal for 25% of the annual production from the estimated 76 million tonnes of niobium pentoxide. This marks the second offtake agreement for Globe’s Kanyika Niobium Project, situated roughly 55km northeast of Kasangu, Malawi.
The project operates under large-scale mining licence LML0216/21, which permits Globe to mine niobium, tantalum, zirconium, and other minor metals. With this latest agreement, Globe has successfully secured non-binding offtake agreements for 57% of niobium pentoxide and exclusive rights for 100% of tantalum pentoxide production from the project’s initial phase.
The agreement is scheduled to span an initial period of three years starting with the commencement of phase one production, with pricing tied to current Asian market rates for metals. Globe’s CEO, Paul Smith, emphasized the agreement’s significance in advancing the project’s funding and overall development through strategic partnerships.
Both Globe and Myst are targeting the establishment of a binding offtake agreement by Q2 2025, aiming for full agreement finalization by 1 September 2025. Furthermore, in June 2023, Globe secured an equity facility with Long State Investments, which may provide up to $20 million (approximately A$31.62 million) within two years to facilitate the development of the Kanyika Niobium Project.
The MOU between Globe Metals and Myst Trading signifies a crucial step in securing offtake agreements essential for the Kanyika Niobium Project’s funding and advancement. With comprehensive production rights and a strategic partnership targeting Asian markets, Globe is poised for significant progress. Upcoming binding agreements and strong financial backing through equity facilitation further support the project’s rapid development.
Original Source: www.mining-technology.com
