Offtake Agreements

In April 2019 G6M announced it had entered into an Offtake Agreement for tungsten concentrate with Wolfram Bergbau und Hutten AG, a wholly owned subsidiary of Sandvik AB, an international engineering group working within the mining and rock excavation, metal cutting and materials technology sectors.

The Wolfram Agreement is for the delivery of 140,000 metric tonne units or 1,400 tonnes of WO3, over a four-year period. This equates to the export of approximately 2,200 tonnes of concentrate, produced by the redeveloped Dolphin Mine over that period.

At full production, the redeveloped Dolphin Mine is expected to produce approximately 2,000 tonnes of WO3 per annum, contained in 3,100 tonnes of concentrate.

As such, the Wolfram Agreement represents approximately 20% of its annual production.

In September 2020 the Company secured an offtake with Kalon Resources Limited, a wholly owned subsidiary of Noble Group Holdings, a leading supply chain manager of raw materials with a global footprint. Based in Asia, Kalon specialises in the physical commodity trading and supply chain management of industrial metals including tin, tungsten, tantalum and niobium, as well as special ores such as chrome and manganese.

Kalon has a global footprint and works in close partnership with mining companies, mining communities, mineral processing facilities and industrial endā€users with teams in Singapore, Hong Kong, China, Africa and Brazil.

The Offtake agreement is for 1,500 tpa of tungsten concentrate for an initial period of 3 years.