Tawana Resources and Alliance Mineral Assets have signed an offtake agreement for tantalum produced at their Bald Hill mine.
Tawana Resources (ASX:TAW) and Alliance Mineral Assets (SGX:AMA) have signed an offtake deal for tantalum concentrate produced at the Bald Hill lithium-tantalum mine in Western Australia.
The deal states that a leading tantalum industry specialist will purchase a minimum of 600,000 pounds of tantalum concentrate between April 2018 and December 2020. Additionally, the buyer has the option to purchase other Bald Hill tantalum, such as low-grade or non-standard material.
A prefeasibility study released in July of last year shows that Bald Hill is expected to have an annual production rate of 155,000 tonnes of spodumene concentrate and 260,000 pounds of tantalum pentoxide. It could support a 10-year operation.
The deal is being heralded as a milestone for Bald Hill, with Alliance Mineral Assets CEO Tjandra Pramoko stating, “[w]ith the Ball Hill mine due to commence tantalum production in the first half of 2018, we are pleased to have reached a tantalum supply agreement with a true market leader in the field.”
Bald Hill is fully funded and will produce lithium concentrate in addition to tantalum. First production is set to begin at the end of the current quarter.
Under a July 2017 offtake agreement, Burwill Holdings (HKEX:0024) will purchase all 2018 and 2019 lithium ore concentrate from Bald Hill, with negotiations to follow for production from 2020 to 2023.
Tawana Resources’ share price is up 237.93 percent in the last year, while Alliance Mineral Assets’ has increased by 10.53 percent over the same period.
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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.