Mining Weekly reported that junior mining company, Thor Mining, has just been handed a letter of intent from US-based Global Tungsten & Powders Corporation for up to 75% of its yearly production from the Molyhil Tungsten project.
According to the report:
Thor said on Wednesday that the letter of intent provided terms for a future offtake agreement, subject to a successful technical and legal due diligence, as well as Thor securing the necessary funding to develop the Molyhil mine.
Global Tungsten & Powders would take between 70% and 75% of Molyhil’s yearly production of scheelite concentrate, with the offtake contract stretching over the four-year life-of-mine. The US firm would also have first right of refusal over a two-year extension term.
Chairperson for Thor Mick Billing said in a statement:
This is both a milestone and a major forward step for the Molyhil project, and we welcome the participation of Global Tungsten & Powders, which is a significant player in the global tungsten industry.