PERTH (miningweekly.com) – ASX-listed Force Commodities has signed a binding offtake agreement with Swiss-based Transamine Trading SA over the lead and silver production from its Tshimpala project, in Malawi.
Under the terms of the agreement, Transamine would purchase all of the high-grade lead and silver produced from the Tshimpala project on an evergreen basis, with pricing to be based on the prevailing LME benchmark price.
Force on Wednesday told shareholders that it was currently finalising arrangements with a logistics company to transport the lead and silver product from the Tshimpala project to the Port of Beira, in Mozambique, and into major ports in Asia.
“I am delighted that we have been able to finalise this offtake agreement with such a well-respected and established global commodities trading group as Transamine,” said Force MD Jason Brewer.
“This offtake agreement has been executed within ten days of the company completing its acquisition of the Tshimpala project and represents a significant vote of confidence and validation of that transaction.”
Force earlier this month obtained a majority shareholding in the Tshimpala project, after gaining a 64% shareholding in Switzerland-based TerraCare AG, which holds an 80% interest in Galena Mining, which, in turn, holds the Tshimpala project.
Force issued an initial 40-million fully paid ordinary shares for its shareholding in TerraCare, and would issue a further 40-million shares once Galena had completed the sale of 500 t of contained lead from the Tshimpala project.
As part of its initial work at Tshimpala, Force will undertake a Phase 1 exploration and development programme, which will consist of test pitting, trenching, sampling and geological mapping and modelling.