Aim-listed Critical Metals has entered into an offtake agreement with OM Metal & Resources for the sale of at least 20 000 t of copper oxide ore from its flagship Molulu copper/cobalt project, in the Democratic Republic of Congo (DRC).

The agreement is valid from October 4 to December 31 and can be renewed upon mutual agreement by both parties.

During the contract, where possible, Critical Metals will provide OM with copper ore with an average minimum acid soluble copper grade of 1.5%.

As a general guidance for the ore sales price, using a London Metal Exchange copper price of $8 000/t and an acid soluble copper grade of 3%, the gross price received for the sale of copper ore will be $91.20/t.

OM had last week already taken delivery of the first load of copper ore and has a fleet of ten trucks, each with the capacity to transport 40 t of ore.

“In the last few months, we have experienced significant interest from seven different buyers of our product. We are delighted to announce our offtake agreement with OM Metal & Resources, making Critical Metals the first western and LSE-listed company to produce and sell copper ore in the DRC since Glencore and Ivanhoe Mines.

“This momentous achievement will provide us with short-term cash flow and allows us to fast-track our progress at Molulu,” CEO Russell Fryer says.

“We are sticking to our first phase production target of producing 10 000 t a month of oxide ore and this partnership allows for the production at Molulu to be monetised quickly.

“Furthermore, with the current diamond drilling programmes that are underway at the Molulu oxide and sulphide zones, our confidence in the large potential of Molulu continues to grow,” he adds.

Weighing, moisture determination, sampling and analysis willll be carried out after the delivery of five trucks of ore to OM’s factory. 

Critical Metals says it will send a designated representative to supervise this process to ensure accuracy.