Technology Metals Australia Ltd (ASX:TMT) has agreed to a short extension to the MoU with CNMC (Ningxia) Orient Group Co Ltd (CNMNC) for a binding offtake agreement over vanadium production from the Gabanintha Vanadium Project (GVP).
The parties have agreed to extend the term of the MoU until December 16, 2019, to enable the orderly progression through to a binding offtake agreement.
Parties remain committed
TMT and CNMNC remain committed to delivering a mutually beneficial outcome reflecting the terms agreed in the MoU.
These include minimum annual quantity of 2,000 tonnes of V2O5 to be purchased on a take-or-pay basis and incorporating a floor and ceiling price structure.
“Highly co-operative approach”
Technology Metals’ managing director Ian Prentice said, “We are very pleased with the highly co-operative approach adopted by CNMNC management in progressing the conversion of the offtake MoU to binding offtake agreement.
“This next step will be a very important milestone for TMT and highlights the importance of the recent delivery of the very high-quality DFS on the development of the globally significant GVP combined with the very high purity of the V2O5 product.”
Top 10 producer in China
CNMNC is a subsidiary of China Nonferrous Metal Mining (Group) Co Ltd and is a top 10 producer of vanadium alloys in China, producing vanadium-nitrogen and ferrovanadium alloys for the domestic steel industry.
Established in 1965 and with more than 3,200 employees, CNMNC was restructured in 2003 with registered capital of RMB 2.3 billion.
CNMNC is engaged in research, development and production of vanadium, tantalum, niobium and high-tech alloy products.
It has won more than 100 national, provincial and ministerial level scientific and technological awards in mainland China.