ASX-listed mineral exploration company Symbol Mining has executed an offtake and marketing agreement with Noble Resources International for its shipping and sales programme, expected to commence from the third quarter of 2018.
Via the Imperial Joint Venture (JV), in which Symbol Mining owns a 60% stake, Symbol Mining is granting Noble partial rights to purchase or market product for the life of any of the mines owned and operated by the Imperial JV.
The offtake and marketing agreement also secures the final funding requirements for the development of the Macy project with a short term (12 month) US$3 million loan facility.
Symbol Mining CEO Tim Wither says the 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 Joint Venture, aggressive exploration of future resources and expanding our current asset portfolio across Nigeria.
“We are very pleased to secure the final funding requirements for Macy as well as executing the offtake and marketing agreement with Noble, which is a highly experienced offtake partner and allows us to leverage on Noble’s strong and established customer base,” says Wither.
Full scale mining recently commenced at the Macy project following approval of the mining lease and after a relatively short development period is expected to generate strong cashflow for debt repayment and to provide the ongoing funding for the company’s exploration activities.
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 the third quarter of 2018.
As previously published in the Macy project scoping study on 11 May 2018 and based on indicative offers, smelter discussions and with the continuing market conditions, the company does not anticipate any difficulties in achieving and maintaining a fully sold position for the foreseeable future.