JOHANNESBURG (miningweekly.com) – Aim-listed Tertiary Minerals has signed a memorandum of understanding with global commodities trading group Possehl Erzkontor to enter into a definitive purchase and sales agreement, the company said on Wednesday.
Under the agreement, Tertiary would sell its fluorspar products to Possehl, while the latter would commit to purchase at least 70% of commercial grade acid-spar to be produced at Tertiary's Storuman project in Sweden, Lassedalen in Norway and MB in the US.
Possehl, a wholly-owned subsidiary of chemicals trade, processing and transport specialist Cremer, would provide part of the prefinancing to Tertiary, to assist the company in meeting its working capital needs and capital investment needs for its fluorspar projects in Sweden and Nevada.
Possehl would also provide commercial and logistical support and advice to Tertiary during the development of its fluorspar projects.
“The relationship represents a critical building block in our quest to becoming a leading supplier of fluorspar to the global markets. Not only does this provide the company with the opportunity, and competitive advantage, to secure long-term sales contracts with key fluorspar end-users, but also access to prefinancing, which can form an important part of the overall development funding package for our fluorspar projects and potential future acquisitions,” said Tertiary MD Richard Clemmey.