Premier African Minerals Signs Tungsten Offtake with Noble Resources

Premier African Minerals Ltd. (LSE:PREM) announced that it has completed an offtake agreement with Noble Resources International Pte Ltd. regarding wolframite concentrates from its RHA tungsten mine. RHA is expected to begin commercial production this June.

As quoted in the press release:

Under the Agreement, Premier will supply 500 tonnes of concentrate over an anticipated initial six month period where after Noble will have a right of first refusal of all future concentrates provided Noble matches terms offered by another.

Pricing for concentrates will be based off a discount to the price published by Metal Bulletin for European Ammonium Para-Tungstate (‘APT’). The most recently published price is US$292.5 per mtu.

George Roach, CEO of Premier African Minerals, commented:

Completion of an Off-take Agreement is an essential requirement of our potential debt finance partners. At the same time, the terms of the Off-take Agreement provide some flexibility for Premier to demonstrate quality and consistency of our Wolframite concentrates that may result in better terms after an initial six month period. Premier is particularly pleased to have as well established a trading company as Noble as our Off-take partner.

Click here to read the full Premier African Minerals Ltd. (LSE:PREM) press release.