ASX-listed copper-gold (Cu-Au) explorer R3D Resources (ASX:R3D) reports it has secured a 100% long term copper sulphate offtake agreement with Australian owned mineral sulphate supplier Kanins (Kanins) International.
The 3-year offtake agreement has been signed for Kanins International to be the sole distributor and seller of the company’s technical grade copper sulphate production from its Tartana Copper and Zinc Project in North Queensland.
The agreement also underpins the restart of the Tartana plant and provides confidence in revenue generation following commencement of production at ‘attractive’ pricing.
However, the pricing of the copper sulphate sold to Kanins International is determined by reference to the London Metals Exchange (LME) copper price at the time.
Addressing the off-take agreement, R3D Resources Managing Director, Dr. Stephen Bartrop said: “The agreement with Kanins underpins our Tartana Copper Sulphate plant restart activities and represents a major milestone in bringing this project into production.
“The agreement with Kanins underpins our Tartana Copper Sulphate plant restart activities and represents a major milestone in bringing this project into production.”
We are pleased to be working closely with a recognised world leader in this market, who will provide not only a guaranteed offtake of the companys copper sulphate production at an agreed price, but will also support the production activities with their deep technical knowledge and operational understanding of the copper sulphate market.”
The company further notes that the agreement contemplates first production to begin in December of this year, with a production increase from 200mt per month in the first 8-12 months up to 500mt per month thereafter for a total of 6,000mt per annum.
Kanins International is a ‘major’ international supplier of metallic salts and holds long term copper sulphate supply agreements with its customers in the industrial, animal feed, agricultural and aquaculture markets globally.
It is also reported that Kanins has previously held sale and distribution rights to copper sulphate produced at the Tartana project under previous owners ‘Solomons Copper’.
R3D Resources is an ASX-listed ‘significant’ Cu-Au explorer and developer with a mission of becoming a ‘significant’ Cu and Zn company through the development of its existing projects, acquisition of new projects and exploration success.
The company’s flagship Tartana project is located in North Queensland’s Chillagoe Region about 150km west of the city of Cairns and 40km northwest of the township of Chillagoe. The project comprises four granted mining leases, which is host to 3 separate projects and 1 prospect that define the greater project area.
With the binding heads of agreement with Kanins International now signed, R3D Resources announces that Kanins is set to provide additional technical services through final plant restart activities into initial production.
Images: R3D Resources Ltd
