New Deal Forms Foundation Of Revenue Base At Tormin
Mineral Commodities Ltd (ASX:MRC) has signed off on agreements with Garnet International Resources Pty Ltd, a member of the GMA Group,
The company and GMA Group terminated a life-of-mine Garnet Offtake Agreement in September 2020 and agreed to negotiate new terms to govern their relationship moving forward.
Mineral Commodities Chairman, David Baker, revealed the companies have now executed a suite of agreements which provide the following:
- MRC to supply GMA with 100,000 tonnes of garnet concentrate per annum under a non-exclusive Offtake Agreement commencing from January 1, 2021 for three years with automatic annual renewals after that subject to a minimum six month termination period and the usual commercial price review/escalation mechanisms.
- MRC to deliver circa 635,000t of GMA’s existing garnet product to GMA’s Saldanha facility.
- MRC to provide GMA with an area at Tormin to stockpile GMA owned garnet.
“This offtake agreement with our long term partner GMA forms the foundation of our revenue base at Tormin,” Mr Baker said.
“GMA’s annual commitment represents 65% of our 2020 garnet production, underlining the importance of this partnership to our company.
“We welcome the opportunity to renew and formally reset our long-standing relationship with GMA and explore new opportunities to expand our mutually beneficial commercial interests.
“The company looks forward to working with GMA as it continues to focus on commissioning the Northern Beaches and Inland Strand mining operations which were recently granted under a Section 102 Expanded Mining Right.”