Northern eyes offtake at Browns Range
PERTH (miningweekly.com) – Rare earths developer Northern Minerals has signed a memorandum of understanding (MoU) for a possible offtake agreement over its Browns Range project, in Western Australia.
The company said on Tuesday that the MoU with Jien Mining was conditional upon a proposed placement to the Chinese firm, announced in February, under which Jien would invest some A$49.5-million to advance the Browns Range project.
Under the MoU, Northern had agreed to sell 50% of the project’s offtake on terms, including price and product specification, to be finalised in a definitive offtake agreement.
The MoU included an exclusivity period until June 2017.
As part of the MoU, Northern Minerals and Jien Mining will start discussions to agree on the joint marketing of their respective shares of product under a commercial structure.
Northern Minerals was hoping for a 2016 production start at Browns Range, after a 2014 prefeasibility study estimated that the project would have a net present value of A$446-million. The study was based on a conventional mining operation involving both opencut and underground operations, with Browns Range expected to deliver about 279 000 kg/y of dysprosium, over a mine life of ten years.
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