Energy Transition Minerals (ASX:ETM) has entered into a non-binding memorandum of understanding (MoU) with Traxys Europe for up to 100% of the offtake of tin, tantalum, and niobium concentrates from the company’s Penouta mine in Spain.
Energy Transition Minerals is currently finalising the acquisition of Penouta, which had served as the European Union’s single direct source of tin, tantalum, and niobium until October 2024.
Under the terms of the agreement, Energy Transition Minerals and Traxys Europe are finalising binding documentation to facilitate this offtake. Traxys will receive all offtake and exclusive rights to market, distribute, and sell the products to end users, subject to Energy Transition Minerals’ consent.
The pricing of the metals sold will be based on prevailing market values and final consumer terms.
The MoU is valid for a renewable term of 12 months, or it can be converted into a binding offtake agreement lasting for six years from first production.
Energy Transition Minerals Managing Director Daniel Mamadou says that the company is “delighted to partner with Traxys as the pre-eminent trading partner in the critical minerals space”.
“In particular, their proven experience in the tin, tantalum, and niobium market, as well as established presence in the EU, is expected to deliver significant value to the Penouta mine over its lifetime,” Mamadou says.
“We are excited not only by Traxys’ strong trading credentials but also its unique ability to offer and/or solicit potential funding benefits for Penouta.”
Energy Transition Minerals notes that these three minerals are key for modern industry, technology, and defence applications, with security of supply a key strategic priority for governments around the world.
All three sit on the critical minerals lists in the US, the European Union, and Australia, and the Penouta mine is currently serving as one of the few sources of all three minerals in a single operation in the Western hemisphere, making it strategically significant.
Energy Transition Minerals is focused on the exploration, development, and financing of critical minerals that are essential for a low-carbon future.
Write to Amy Rotman at Mining.com.au
Images: Energy Transition Minerals
