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Kalon specialises in the physical commodity trading and supply chain management of industrial minerals and metals including concentrates of tin, tungsten, niobium, tantalum, alumina, aluminium and special ores such as chrome, manganese and iron ore.

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AVZ MINERALS MAKES BIG STEP IN DELIVERING MANONO
AVZ SIGNS SECOND BINDING OFFTAKE AGREEMENT WITH LITHIUM CONVERTER

Kalon is handling several thousand tonnes of tin concentrate a year.

AVZ International and Kalon have signed a three-year offtake agreement for 600 metric tonnes of tin concentrate per annum from the Manono Lithium and Tin Project equating to approximately 43% of the total tin concentrate available for sale.

AVZ’s MD, Nigel Ferguson, said: “After an unexpected delay in finalising this contract, we are very pleased to have finally signed with Kalon, our first tin offtake agreement – just weeks after having signed our second lithium offtake agreement that cumulatively provides binding commitments for more than 50% of our saleable SC6 product.”

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“Given the rising LME cash price of tin metal, up approximately 30% YTD, this offtake agreement is significant for the Manono Project and also significant given that Kalon is a considerable participant in the tin industry.

“While this agreement represents a relatively small, but growing portion of revenue for the Manono Project, it does confirm another large international business is willing to secure future supply from the project.”

“Similar to our recent lithium offtake agreements, this tin concentrate offtake agreement with Kalon will assist the Company in meeting certain conditions precedent which are required from our prospective financiers.”

“Again, we look forward to finalising some further offtake agreements for the remainder of the project’s products to satisfy some of the criteria our potential lenders have requested.”

Key terms of the Kalon Resources offtake agreement:

  • Term: 3-year term
  • Annual supply: 600 metric tonnes of tin concentrate (+/-20% in seller’s option)
  • Product specifications: min 55% Sn content, with expected typical product grade between 60 and 70% Sn
  • Pricing formula linked to LME tin price (exact terms are commercial-in-confidence)
  • Delivery Point: Free Carrier (FCA), bonded warehouse Lubumbashi
  • Provisional payment for each shipment via telegraphic transfer against loading documentation at the delivery point
  • Agreement by the parties to place an importance and focus on ESG development through the commercial partnership.