Globe Metals & Mining (Globe) has signed a non-binding memorandum of understanding (MOU) with Myst Trading (Myst) for the offtake of phase one production from the Kanyika Niobium Project in Malawi.
The MOU includes the purchase of 14 tonnes (t) of refined high-purity tantalum pentoxide and 76t of refined high-purity niobium pentoxide.
It outlines the framework for both parties in negotiating a binding offtake agreement for the Kanyika Niobium Project phase one production.
The agreement will provide Myst Trading with the right to purchase 100% of the estimated annual production of 14t of refined high-purity tantalum pentoxide.
Additionally, Myst will hold a right of first refusal to purchase 25% of the estimated annual production of 76 million tonnes of refined high-purity niobium pentoxide.
This agreement marks the second offtake agreement for Globe’s Kanyika Niobium Project, which is located approximately 55km north-east of Kasangu in central Malawi.
The project lies within large-scale mining licence LML0216/21, which grants the right to mine niobium, tantalum, zirconium and other minor metals.
Globe has now secured non-binding offtake agreements for 57% of niobium pentoxide and 100% of tantalum pentoxide production from the first phase of the project.
The agreement’s initial three-year period will begin with the start of phase one production.
The price for the products will be connected to current Asian metals market prices.
Globe CEO Paul Smith said: “The MOU with Myst confirms our significant progress in finalising offtake agreements for all phase one production at the Kanyika Project. Such agreements are a critical component of the project’s funding and ultimate development. This is the second non-binding agreement signed by Globe, following our agreement with Affilips N.V on niobium offtake (announced in September 2024).
“The Myst MOU gives Globe access to the lucrative Asian markets for niobium and tantalum oxides. We look forward to a long relationship with Myst. The key non-binding agreements will further support the finalisation of our updated bankable feasibility study and associated funding commitments under way. Globe looks forward to announcing very significant Kanyika Project development milestones in the coming months, which will pave the way for the development of this exciting project.”
Globe and Myst aim to execute a binding offtake agreement by the second quarter of 2025, with a full offtake agreement expected by 1 September 2025.
In June last year, Globe Metals secured an at-the-market equity facility with Long State Investments, a New York-based company, which will offer up to $20m (A$31.62m) over a two-year period to advance the Kanyika Niobium Project.
