(Alliance News) - Marula Mining PLC on Wednesday said it has signed its first copper sales agreement with an unnamed European commodity trading group.
The London-based mining company with projects in South Africa, Kenya and Tanzania said the deal was borne from the high-grade copper concentrates produced at the Kinusi copper mine in the Mpwapwa district of Tanzania's Dodoma region.
The agreement involves an initial delivery of 250 tonnes of copper, out of a total 1,000 tonnes of planned copper concentrate trial sales shipments, based on a minimum 20% grade.
The first delivery, to a bonded warehouse in Dar es Salaam in Tanzania, is expected to be made by March 7. A provisional 90% payment for the initial 250 tonnes sale will be made on receipt of check assay, weight and moisture results.
First sales revenue is anticipated to be received during Marula's current quarter, and will continue "thereafter".
"Securing our first copper ore sales agreement with a leading global commodity trading group marks a major milestone for Marula Mining and its partners, Takela Mining and the Kinusi copper mine," said Chief Executive Officer Jason Brewer.
"We are looking forward to concluding these initial sales and also in securing additional sale agreements with other trading groups shortly."
The deal is one of four agreements currently being finalised by Marula and local partner Takela Mining Tanzania Ltd for copper ore trial shipments and sales to European commodity trading groups.
Marula said talks were at "advanced" stages, "given the recent copper assay results of mined, processed and already bagged saleable copper concentrate at Kinusi".
Brewer continued: "We are excited about the potential for further expansion and remain committed to developing Kinusi into a key contributor to our growing portfolio of battery and strategic metals projects."
Shares in Marula Mining were up 2.2% at 5.75 pence on Wednesday afternoon on the Aquis in London.
By Emily Parsons, Alliance News reporter
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