True North Copper (ASX:TNC) has begun copper sulphate production at its Cloncurry Project in Queensland under an exclusive offtake agreement with Kanins International.
The $108.48 million market capitalisation company says the offtake agreement will see Kanins acquire all copper sulphate produced at the sites for the life of copper sulphate production from those sites. Kanins will provide technical services to True North at negotiable fees as required to assist in producing products that will achieve the ‘highest’ return.
Under the offtake deal, the price of copper sulphate sold to Kanins is determined by reference to the London Metals Exchange (LME) copper price at that time plus a surcharge.
It is estimated that about 12,000 tonnes of copper sulphate crystal will be produced per annum from the Cloncurry Project.
Commenting on the production activities, True North Copper Managing Director Marty Costello says: “This accomplishment is a testament to the dedication and efforts of our entire team.
“We believe our offtake agreement with Kanins International provides confidence in True North Copper’s revenue generation”
We believe our offtake agreement with Kanins International provides confidence in True North Copper’s revenue generation. The agreement ensures a premium above the London Metal Exchange price for our high-quality copper sulphate, providing a stable and predictable revenue stream.
This is another milestone completed that forms part of our overarching strategy to become Australia’s next critical minerals producer of copper and cobalt as we finalise restart studies for full-scale production.”
Kanins International is an Australian owned business founded in Melbourne and operating globally since 2006 and has manufacturing partners in Australia, Taiwan, Singapore, South Korea, China, India, Turkey, and throughout Africa and North and South America.
The company is a key supplier of mineral sulphates and oxides to the agricultural market and a preferred supplier to many multinational feed mills and agribusinesses. It also supplies to many of the global mining/mineral processing companies.
True North Copper is an ASX-listed company headquartered in Cairns, Queensland. The company is focused on its copper and cobalt projects located in Cloncurry and Mt Oxide.
Write to Aaliyah Rogan at Mining.com.au
Images: True North Copper Ltd
