Globe Metals & Mining has signed a non-binding MOU with Myst Trading for offtake from the Kanyika Niobium Project, including 14 tonnes of tantalum and 76 tonnes of niobium pentoxide. This marks another significant step in finalizing offtake agreements essential for funding the project. A binding agreement is targeted for completion by September 2025.
Globe Metals & Mining has entered into a non-binding memorandum of understanding (MOU) with Myst Trading for the offtake of phase one production from the Kanyika Niobium Project located in Malawi. The MOU stipulates the purchase of 14 tonnes of refined high-purity tantalum pentoxide and 76 tonnes of refined high-purity niobium pentoxide, serving as a framework for negotiating a binding agreement.
This arrangement grants Myst Trading the right to purchase 100% of the estimated annual production of 14 tonnes of refined high-purity tantalum pentoxide and a right of first refusal on 25% of the estimated annual output of 76 tonnes of refined high-purity niobium pentoxide. This marks the second offtake agreement for Globe’s Kanyika Niobium Project and highlights its strategic location approximately 55 kilometers northeast of Kasangu in central Malawi.
To date, Globe has secured non-binding offtake agreements covering 57% of niobium pentoxide and 100% of tantalum pentoxide production from the initial phase of the project. The agreement is set to commence with the initiation of phase one production, with product pricing linked to current Asian metals market rates.
Globe CEO Paul Smith emphasized the significance of the MOU, stating its importance in finalizing offtake agreements foundational for the project’s funding and advancement. He articulated optimism about fostering a long-term collaboration with Myst Trading, which complements ongoing efforts to finalize an updated bankable feasibility study and funding commitments.
An official binding offtake agreement is anticipated by the second quarter of 2025, with completion by September 1, 2025. Additionally, Globe Metals has secured an equity facility with Long State Investments, granting up to $20 million to support the Kanyika Niobium Project over the next two years.
The signing of the non-binding MOU between Globe Metals & Mining and Myst Trading signifies a pivotal step toward the future development of the Kanyika Niobium Project. With substantial quantities of niobium and tantalum set for purchase and a commitment to finalize a binding agreement, Globe enhances its prospects in the lucrative Asian metals market, thereby bolstering project funding and execution efforts.
Original Source: www.mining-technology.com
