Through an offtake agreement with Noble Resources, Symbol Mining also picked up a short term US$3-million loan that will help finance its Macy deposit in Nigeria.
Symbol Mining (ASX:SL1) has executed an offtake and marketing agreement with Noble Resources International, through which the company has also secured a short term US$3-million loan.
The US$3-million loan helps provide the final funding requirements for the company to develop its Macy zinc-lead deposit in Nigeria. Full scale mining at the deposit just recently began in July, following the approval of its mining lease. The project is expected to generate strong cash flow and provide funding for Symbol’s exploration activities after a brief development period.
“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,” Symbol CEO Tim Wither said in a statement.
Through the agreement, Noble has been granted partial rights to buy or market product for the life of any mines owned and operated by Symbol’s joint-venture partner, Goidel Resources, which owns 40 percent of the Imperial project that houses the Macy deposit.
Meanwhile, the US$3-million loan facility will have a 12 month term, while also granting Noble increased offtake rights during that time.
“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,” Wither said.
According to the company, Macy is the first industrial scale mining operation in Nigeria for several years. Symbol is on track for its first shipment of zinc and lead product by the end of Q3 2018.
The Imperial project consists of three exploration licenses and three mining leases, which span 510km2 and include the Macy deposit and the Aisha prospect.
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.