Tyranna Resources is primed to accelerate the exploration and development of its Namibe Lithium Project in Angola, having executed a binding offtake agreement with Chinese commodity giant Sinomine.
The offtake agreement will see Sinomine take 50 per cent of both the spodumene and pollucite produced, with the global mining group delivering an advanced payment of USD$10 million dollars when the ball mill has been delivered and bolt installed at the mining operation.
Pricing for Namibe’s product in the offtake deal will reflect market prices for spodumene and pollucite at the time of offtake, with Tyranna having the opportunity to sell products produced from Namibe to third parties should Sinomine opt not to take some or all of its offtake entitlement, with Sinomine obliged to pay any shortfall in the purchase price.
A Growing Relationship
Alongside securing offtake for Namibe and bringing in an additional USD$10 million dollars in funding, execution of the offtake deal is a massive step in Tyranna’s deepening relationship with Sinomine, being a key condition to the Company fulfilling the first phase of a massive AUD$31 million dollar investment agreement.
Having received ministerial approval for the transfer of Namibe to its 100 per cent owned subsidiary Angolitio Exploracao Mineira last month and having executed the offtake agreement, Tyranna has now satisfied all key conditions for phase one of funding, which will consist of an AUD$4.5 million investment into the Company and an AUD$10 million investment into the Project.
Having secured first-phase funding, Tyranna will waste no time putting the money straight into the Project, with two Sinomine drill rigs already mobilised to the Angolan project for an expedited drilling campaign.
The campaign will follow up on a number of compelling new discoveries at the Project, with the explorer identifying an entirely new lithium prospect with rock chip samples grading up to 4.24% Li2O late last month.
The Company said it is excited to be working with Sinomine to develop this exciting project.
“The Board is extremely pleased to have completed negotiations and executed a binding offtake agreement with Sinomine. The key condition precedent to the completion of the Phase 1 investment will provide the funds to accelerate the exploration program in Angola,” Tyranna’s Chairman Joe Grazino said.
“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 program progresses.”
Source: the market bull