BEIJING (Asian Metal) 8 Oct 19 – On October 1, Technology Metals Australia Limited announced the execution of a non-binding Memorandum of Understanding (“MoU”) with Shaanxi Fengyuan Vanadium Technology Development Co., Ltd. (“Fengyuan”) in relation to establishing a binding V2O5 offtake agreement over vanadium production from the Gabanintha Vanadium Project.
Technology Metals Australia and Fengyuan have agreed to negotiate a definitive and binding offtake agreement for the supply and purchase of vanadium pentoxide (V2O5) product that the Company intends to produce from the Project.
Key terms that have been defined and agreed upon in the MoU are:
— Initial minimum annual quantity of V2O5 to be purchased of 3,000tpa on a take-or-pay basis;
— Fengyuan to purchase such quantity of product that is available, up to 3,000tpa, during the ramp-up and commissioning phase of the Project;
— Minimum term of five years with an option to renew for an additional five years.
The MoU is effective until 31 December 2019 unless the parties mutually agree to formally terminate or extend the term.
In addition, the Company has held constructive discussions with CNMNC on converting the previously announced MOU to a binding Agreement. The parties are highly encouraged with progress achieved and have mutually agreed to extend the term of the MOU until 30 November 2019.
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