Critical Metals Secures Offtake Deal for 20,000 Tons of Copper Oxide Ore in DRC
Critical Metals has recently finalized an offtake agreement with OM Metal & Resources. This agreement paves the way for the sale of a minimum of 20,000 tons of copper oxide ore originating from its flagship project, the Molulu copper/cobalt venture, situated in the Democratic Republic of Congo (DRC).
The agreement is valid from October 4 to December 31 and can be renewed upon mutual agreement by both parties.
Throughout the contract duration, Critical Metals aims to supply OM with copper ore featuring an average minimum acid-soluble copper grade of 1.5%.
As a pricing reference, considering the London Metal Exchange copper price of $8,000 per ton and an acid-soluble copper grade of 3%, the gross sale price for copper ore is anticipated to reach $91.20 per ton.
Just last week, OM took delivery of the initial shipment of copper ore, utilizing its fleet of ten trucks, each capable of transporting 40 tons of ore.
Over the past few months, we’ve witnessed substantial interest from seven different buyers for our product. We are thrilled to announce our offtake agreement with OM Metal & Resources, marking Critical Metals as the first Western and LSE-listed company to both produce and market copper ore in the DRC since the operations of Glencore and Ivanhoe Mines.
This remarkable milestone not only injects short-term cash flow but also accelerates our progress at Molulu,” stated CEO Russell Fryer.
“We are committed to achieving our initial phase production goal, which entails producing 10,000 tons of oxide ore per month. This partnership expedites the process of realizing revenue from Molulu.
Moreover, as our diamond drilling programs progress in both the Molulu oxide and sulphide zones, our belief in the substantial potential of Molulu only strengthens,” he emphasized.
After the delivery of five ore trucks to OM’s facility, procedures such as weighing, moisture determination, sampling, and analysis will be conducted.
Critical Metals has stated its intention to dispatch a designated representative who will oversee these processes to ensure their precision and accuracy.
