Blackham Resources Limited (ASX: BLK) and global trading house Trafigura Pte. Ltd have executed a sales contract for the purchase of gold concentrate from Blackham’s Stage 1 Expansion project in Western Australia.
The contract shall be effective from the start of Blackham’s gold concentrates production anticipated in Q3FY21, for a period of three years, and following that shall be renewed on an evergreen basis with 12 months’ notice exercisable by either party.
The minimum quantity to be delivered under the contract is 52,500 tonnes of gold concentrate. The terms that have been agreed are aligned with the financial model that Blackham has developed for the Stage 1 Expansion Project. Trafigura’s global non-ferrous concentrate trading book, which is in excess of 10 M tonnes per annum, together with its global blending facilities which service a variety of markets render Trafigura an ideal partner for Blackham. Blackham Executive Chairman Milan Jerkovic said that reaching agreement for the sale of a significant proportion of Stage 1 gold concentrate production is an important milestone for the company.
“Reaching that agreement with a global counterparty such as Trafigura provides certainty in the sale potential of the Wiluna gold concentrates,” Mr Jerkovic said.
“We look forward to developing a sustainable long-term operation based on the production of gold concentrates with partners that consider operational sustainability as a crucial element of conducting business.”
]Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. Trafigura sources, stores, transports and delivers a range of raw materials (including oil and refined products and metals and minerals) to clients around the world.
The trading business is supported by industrial and financial assets, including 49.3 percent owned global oil products storage and distribution company Puma Energy; global terminals, warehousing and logistics operator Impala Terminals; Trafigura’s Mining Group; and Galena Asset Management.