Winmar Resources Ltd (ASX:WFE) has executed several ore purchase agreements for the supply of high-grade cobalt and copper ores to the Luapula Processing Facility in the Democratic Republic of Congo (DRC).
The company has secured a 50% interest in the Luapula facility under the terms of a deal executed in July 2018 with African Holding Investment Company (AHIC).
The completion of this deal is subject to Winmar’s re-compliance with Chapters 1 and 2 of the ASX Listing Rules and the company’s re-listing on ASX.
Mining and haulage operation near Likasi; proposed to provide high-grade cobalt and copper ores to the Luapula facility
The new agreement includes minimum contracted monthly ore deliveries to the Luapula Processing Facility of 53,000 tonnes per month, at minimum acid soluble cobalt grades of 1% and minimum acid soluble copper grades of 2.5%.
The ore purchase agreements are in place for an initial period of 12 months, with an option to extend by a further 24 months.
The execution of the new ore purchase agreements follows the incorporation of a new joint venture company, Winmar Lufira Mining Company S.A. (WLMC) which is held 50% by Winmar and 50% by AHIC.
WLMC is the DRC incorporated legal entity that, subject to Winmar satisfying ASX in terms of its re-listing on ASX, will hold the title to, and operate and manage the Luapula Processing Facility.
Luapula facility milling section
WLMC has received all necessary permits, approvals and licenses to operate as a company in the DRC and is currently awaiting the issuance of the Category B License, allowing WLMC to commence stockpiling of run-of-mine feed and processing operations at the Luapula facility.
With WLMC incorporated and receipt of the Category B License anticipated, Winmar and its in-country advisors have moved to secure the supply of high-grade cobalt and copper ores.