Tyranna Resources Limited (ASX: TYX) has executed a binding offtake agreement for both 50% of the spodumene and 50% of the pollucite from the Namibe Lithium Project with Sinomine Resource Group Co., Ltd. and Sinomine International Exploration (Hong Kong) Co., Limited.
Execution of the Offtake Agreement is the key condition precedent of the conditional subscription agreement with Sinomine to invest circa A$31,000,000 to provide funding for exploration and development of the Namibe Lithium Project in Angola.
“The Board is extremely pleased to have completed negotiations and executed a binding offtake agreement with Sinomine,” Joe Graziano, the Chairman of Tyranna, said.
“The key condition precedent to the completion of the Phase 1 investment will provide the funds to accelerate the exploration program in Angola. Both exploration teams are involved in progressing the design of the next drilling campaign to efficiently work through the strategy to explore the project and we look forward to positive news flow as the programme progresses.”
Offtake Agreement
Offtake rights
Sinomine will have offtake rights for 50% of future lithium and 50% of pollucite produced within the Namibe Lithium Project area, or any operations directly related thereto.
Sinomine will also have the right to match any third party offer for the balance of production at the Namibe Lithium Project.
If Sinomine elects not to take some or all of its lithium or pollucite offtake entitlement under the Offtake Agreement, Tyranna may sell that product to third parties at a rate which is not lower than the rate that Sinomine would have been required to pay for such product, with Sinomine obliged to make up any shortfall in the purchase price.
Prepayment
Sinomine will make an advance payment of US$10,000,000, when the ball mill has been delivered and bolt installed at the location of the mining operation.
About Sinomine
Founded in 1999, Sinomine is a listed company on the Shenzhen stock exchange and has a market capitalization of approximately A$8 billion. It has developed into a global mining group with a comprehensive resource industrial chain. Sinomine’s main business and operations cover four segments: rare light mineral (cesium and rubidium) resources development and utilization, EV lithium material development and utilization, geo-technical services, and mineral properties development.
Sinomine’s business covers more than 40 countries, including Canada, US, UK, Norway, Zambia, Congo (DRC), Zimbabwe, Uganda, Indonesia, Malaysia and other regions in Asia, Africa, Europe, America, and Oceania.
For further information please visit: https://tyrannaresources.com/
