Group 6 Metals (ASX:G6M) has extended its offtake agreement with global commodities trading firm Traxys Europe.
The company will be required to deliver a minimum of 10,000 tonnes of tungsten trioxide in scheelite concentrates to Traxys over several years.
The agreement will come into immediate effect using prices linked to spot prices prevailing.
The extension is expected to provide ‘significant’ benefits for both Group 6 and Traxys, as Group 6 focuses on advancing global access to tungsten markets.
Group 6 Executive Chairman Kevin Pallas says the company is pleased to have brought the agreement to a close with an association with Traxys.
“Working together with this global leader in the raw materials industry provides Group 6 Metals with access to the entire spectrum of tungsten concentrate consumers,” Pallas says.
“We are now able to leverage Traxys’ extensive market network and, importantly, benefit from Traxys’ participation in various government initiatives for securing supply chains of critical raw materials, such as the recently announced US$12 billion Project Vault.
“Having worked with the Traxys team over the past several years, we have forged a close relationship in which Traxys has been very supportive during our production ramp-up.”
Traxys CEO Mark Kristoff says the firm is keen on creating a “bright future” with Group 6.
“The extension of our contract with a high quality, reliable partner, reinforces Traxys’ position in the tungsten market and improves the resilience of our critical minerals trade flows as demand continues to evolve,” Kristoff says.
Group 6 Metals is an Australian resources explorer and developer focused on its Dolphin Tungsten Mine located on King Island, Tasmania.
Write to Maddison Elliott at Mining.com.au
Images: Group 6 Metals
