By Kari Williamson
These offtake agreements cover 80% of Hemerdon’s expected average annual tungsten concentrate output for a period of a minimum of five years, extendible under mutual consent.
Wolf is expected to supply a 65% tungsten trioxide, wolframite concentrate based upon standard commercial terms under the agreement. The Hemerdon mine is expected to produce an average of 345,000 mtu’s of tungsten trioxide in concentrates per annum and 450 tonnes of tin.
Subject to technical and legal due-diligence as well as board approvals WBH and GTP will provide a £20 million loan facility to Wolf as part of the project funding package, and is in addition to the recently announced debt facility of £55m.
Wolf expects to complete the final documentation for the offtake agreements, in conjunction with documentation for the lending banks, in the second quarter of 2012.
Humphrey Hale, Wolf's CEO, says: “The signing of a long term offtake contract with two of the largest tungsten producers represents a significant milestone in the development of the Hemerdon tungsten mine. The company is pleased to provide security of supply to these global speciality powder and metal manufacturers and looks forward to developing a strong relationship in the future.”
