Bauba Platinum enters into an Offtake Agreement
Bauba Platinum Limited announced that it has concluded a Chromite Ore Commodity Purchase Contract ("Offtake Agreement") with Gerald Metals S.A. ("Gerald") and Pelagic Resources Proprietary Limited ("Pelagic Resources") for chrome ore Run of Mine ("ROM") 40% Cr2O3 produced from Bauba's Moeijelijk Mine. This Offtake Agreement is to be underpinned by a $5 million prepayment, which represents a part prepayment on 240,000 tonnes of chrome ore ROM to be supplied.
The Offtake Agreement includes an appropriate reduction factor on chrome ore ROM tonnage obligations once chrome ore concentrate material is produced from Moeijelijk Mine's wash plant.
This prepayment may be used for further growth enhancing projects at Bauba's Moeijelijk Mine or towards acquisition and development of new mines that Bauba is currently pursuing.
Gerald is part of The Gerald Group, a leading private global commodity trading company engaged in the physical merchanting, development, trade and structured finance of commodities with approximately $3 Billion in assets and $10 Billion in revenue. Gerald has been purchasing on a spot basis from Bauba via its relationship with Pelagic Resources for a year and this transaction complements Gerald's raw material books and its overall marketing strategy.
Pelagic Resources, who has successfully participated over the last 18 months in the marketing of Bauba's chrome ore production, specialises in international finance, marketing, and supply chain solutions for the global trade of mineral ores and alloys.
"This financing and offtake agreement will further enhance Bauba's future profitability. Gerald's commitment to pre-finance and trade Bauba's chrome ore production is a significant vote of confidence in the future prospects of our Company." says Nick van der Hoven, CEO of Bauba.