ASX-listed Malawian explorer Force Commodities (ASX:4CE) has inked a binding offtake agreement with Swiss-based Transamine Trading SA for all lead and silver production from its recently acquired high-grade lead and silver Tshimpala project, as well as finalised transport arrangements through an international logistics giant.
The Geneva-based Transamine is one of the world’s largest and respected traders of raw materials, with operations across the globe.
The offtake agreement is the first major deal completed by Force since the ambitious prospector completed its acquisition of a 51% interest in the Malawian project earlier this month.
Under the multi-year offtake agreement Transamine has the right to purchase all high-grade lead and silver produced from Tshimpala, with pricing determined by the LME lead benchmark and LBMA silver price.
Commenting on the agreement, Force Commodities managing director Jason Brewer said:
“I am delighted that we have been able to finalise this offtake agreement with such a well-respected and established global commodities trading group as Transamine.
“This offtake agreement has been executed within 10 days of the company completing its acquisition of the Tshimpala project and represents a significant vote of confidence and validation of that transaction.
“All of us at Force look forward to now working with Transamine, as we progress the high-grade lead and silver Tshimpala Project in Malawi,” he said.
Material produced for Transamine will be transported by Bolloré Transport and Logistics, part of the Bolloré Group, which is one of the 500 largest companies in the world.
Force will deliver lead and silver material in sealed containers from the project by truck along sealed road, to Bolloré’s depot located in the Malawian Capital of Lilongwe.
From the depot, Bolloré will arrange offloading and transport to the ports of Beira or Nacala, both located in neighbouring Mozambique, where the material will be shipped to customers in Asia.
“Bolloré is without doubt the leading transport and logistics company in Africa, with a transport network and logistics support second to none,” Mr Brewer said.
“We will now be able to move forward with our activities at the Tshimpala Project with confidence and with the support of one of the biggest international transport and logistics companies,” he
added.
The Tshimpala project is a large lead-silver deposit located 45km from the Malawian capital of Lilongwe and hosts significant historical artisanal workings.
Force will look to complete a modern exploration campaign, with the company looking to complete test pitting, trenching and sampling, as well as 2,500m of RC drilling and ground EM surveys.
Trial mining has already been completed at the Grand Canyon, Riverside and Small Canyon prospects in November 2018, with a bulk sample trucked to ALS Laboratories in South Africa which returned an average grade of 60.48% lead and 735g/t silver.