Australian zinc-focused mineral exploration company Symbol Mining has executed an offtake and marketing agreement for its shipping and sales programme for the Macy zinc project, in Nigeria, with international commodities group Noble Resources International.

The shipping and sales programme is expected to start this quarter.

The offtake and marketing agreement also secures final funding requirements for the development of the project, with a short term $3-million loan facility.

The Macy project is the first industrial scale mining operation in Nigeria for several years and Symbol is on track for its first shipment of high-grade zinc and lead product by the end of this quarter.

The project could produce 38 100 t of shippable product and 6 950 t of mixed product over an initial mine life of 12 months, generating about A$20.3-million in free cash flow.

Under the agreement, the joint venture (JV) partners Imperial JV have granted Noble partial rights to purchase or market product for the life of any mines owned and operated by the partners. This incorporates provisions and commercial terms and conditions typical of such an agreement.

Meanwhile, the $3-million loan facility will have a 12-month term, and grants Noble increased offtake rights for the term of the facility, Mining Weekly reported last month.

“Execution of the offtake agreement and securing the final funding requirements for Macy demonstrates the continued support of Symbol’s strategy of securing early high margin cash flow from the Imperial JV, aggressive exploration of future resources and expanding our current asset portfolio across Nigeria,” Symbol Mining CEO Tim Wither said in a statement in July.

The Macy Project

Full-scale mining operations are under way at the high-grade zinc and lead project, in Nigeria, after the project at the Imperial JV received final approval from the Nigerian Mining Cadastral Office.

The mining lease and environmental protection and rehabilitation plan approvals conclude several months of dedicated work by the Imperial JV team, in partnership with an independent environmental group, local communities and wider stakeholder groups.

Wither noted in a statement that receiving approval for the mining lease and starting full-scale mining at the Macy project “was a great accomplishment for all parties involved”.

“Approval of the mining lease shows the ongoing support from the Nigerian Mining Cadastral Office in advancing the first industrial scale mining operation in Nigeria for several years and we appreciate the effort from everyone involved,” Wither added.

After a relatively short development period of two months, the project is expected to generate a strong cash flow, enabling Symbol Mining to fund exploration at both its Imperial and Tawny projects – zinc and lead mines in Nigeria – and to generate strong cash flow for debt repayment, Wither noted.