AfriTin Mining has agreed a new offtake agreement for its tin concentrate with its existing trading partner, Thailand Smelting and Refining, as well as signing an inaugural offtake agreement with AfriMet Resources for its future tantalum production.
The tin concentrate offtake agreement with Thaisarco has been renewed for a further three years, until 30 November 2023 relating to delivery of product at Walvis Bay Cargo Terminal in Namibia.
The Company is also pleased to announce that it has concluded an offtake agreement with AfriMet for tantalum concentrate produced from the Uis Tin Mine for a twelve-month period with an option to renew for a further three years upon mutual consent of the parties.
AfriMet Resources AG is a strategic African commodity trading company and 100 percent owned subsidiary of the Zug based ferrous and non-ferrous commodity merchant, Vanomet.
AfriMet is a leader in trading the 3T metals (tin, tantalum and tungsten) and minerals sourced from Africa.
Anthony Viljoen, CEO of AfriTin Mining comments:
“This last year has proved extremely positive for AfriTin, with tin production achieving design capabilities for Stage I at Uis ahead of year-end.
“This was a defining milestone for the Company, and I am delighted to report that the strong tin concentrate production levels have been maintained since November 2020.
“The first quarterly update on the production performance will be made to the market at the beginning of March 2021. The strong performance at Uis has coincided with the tin price hitting new recent highs, breaking through the ceiling of US$23,000 per tonne for the first time since 2014.
“The main drivers behind the price increase are the ever-growing demand from electronics and electric vehicles, alongside the low supply of tin inventories.”
“These contributing factors have enabled AfriTin to announce that it will continue its tin offtake agreement for Uis with Thaisarco for a further three years.
“In addition, the Company is also pleased to have concluded a tantalum offtake agreement with AfriMet which will become a second product alongside our tin concentrate this year.
“AfriTin is delighted by both votes of confidence, from two leaders in the global and African markets and looks forward to continuing these relationships.”
Andrew Davies, MD of Thaisarco comments:
“Thaisarco remains a strong supporter of AfriTin and we are pleased to sign the new offtake agreement for responsibly sourced and conflict-free tin concentrate production for a further three years.
“It remains a pleasure to work with the team at AfriTin and we look forward to a long business relationship as the Company looks to unlock the true value potential at Uis.”
Hadley Natus, CEO of AfriMet comments:
“AfriMet is delighted to announce its inaugural tantalum offtake agreement with AfriTin as the Company looks to explore additional avenues to monetise its tantalum concentrate production alongside its tin concentrate. AfriMet is pleased to have the agreement in place for an initial 12-month period with the option to renew for a further three years upon mutual consent.”
The salient terms of the offtake agreement are as follows:
- AfriMet shall pay AfriTin a payment calculated by reference to the amount of tantalum pentoxide (Ta2O5) contained in the tantalum concentrate, at a price in US$ per/lb of the average of the Argus Metals tantalum price and Asian Metals tantalum price for the two months prior to the expected delivery date, less a deduction of US$1 per/lb
- A 90% provisional payment is made upon presentation of original export documents
- The final 10% payment, as well as any quality adjustments, is paid upon finalisation of the assay and weights by the receiving third party
- AfriTin may elect to receive an advance payment, 30 days prior to the expected delivery date, to the value of 50% of the expected cargo value based on the agreed price for the expected delivery. The limit on the advanced payments is US$500,000.