AVZ Minerals (ASX:AVZ) - Managing Director, Nigel Ferguson
Managing Director, Nigel Ferguson
Source: Business News
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  • AVZ Minerals (AVZ) has signed an offtake agreement with Noble Group’s subsidiary, Kalon Resources
  • Under the three-year deal, AVZ will sell 600 metric tonnes of tin concentrate per annum from the Manono Lithium and Tin Project which is located in the Democratic Republic of Congo
  • The product will contain at least 55 per cent tin, however, the expected product grade will range between 60 and 70 per cent tin
  • Importantly this deal marks AVZ’s first tin offtake agreement and will hopefully pave the way for more supply and purchase arrangements from the Manono Projects
  • Company shares are up 7.5 per cent and are trading at 21.5 cents

Through its wholly-owned subsidiary, AVZ International, AVZ Minerals (AVZ) has signed an offtake agreement with Noble Group’s subsidiary, Kalon Resources.

AVZ is acting on behalf of Dathcom Mining, which partially owns the Manono Lithium and Tin Project which is located in the Democratic Republic of Congo.

The three-year offtake will see AVZ sell 600 metric tonnes of tin concentrate per annum to Kalon Resources. The tin concentrate will be sourced from the Manono Project and the tonnage equates to about 43 per cent of the total tin concentrate available for sale.

Kalon specialises in managing the trading and supply of various industrial minerals and metals.

“After an unexpected delay in finalising this contract, we are very pleased to have finally signed with Kalon, our first tin offtake agreement,” AVZ Managing Director Nigel Ferguson said.

The tin concentrate product will contain at least 55 per cent tin, however, the expected product grade will range between 60 and 70 per cent tin.

“Given the rising LME cash price of tin metal, up approximately 30 per cent year to date, this offtake agreement is significant for the Manono Project and also significant given that Kalon is a considerable participant in the tin industry,” Nigel added.

AVZ considers this agreement to be highly encouraging for potential future supply arrangements and will help with meeting certain conditions that are required from prospective financiers.

Company shares are up 7.5 per cent and trading at 21.5 cents at 10:00 am AEDT.

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