Symbol Mining executes marketing and funding agreement with Noble for Nigerian project
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03:35 16 Jul 2018
The short-term facility provides the last funding needed to start shipping high-grade zinc and lead by the end of this quarter.
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Symbol is mining from the open pit at the Macy JV project
Symbol Mining Ltd (
ASX:SL1) has executed an offtake and marketing agreement with Noble Resources International Pte Ltd which enables shipping of high-grade zinc and lead from the Macy project in Nigeria to start this quarter.
The agreement also secures final funding requirements for development of Macy through a short-term US$3 million loan facility.
The 60%-owned deposit is part of the three-lease, 510-square kilometre Imperial project that the Western Australian company runs as a joint venture with 40% owner-partner Goidel Resources Limited.
READ: Symbol Mining looks to prove up economic viability of Macy project after upgrading JORC resource
Symbol chief executive officer Tim Wither welcomed the offtake agreement and final Macy funding requirements facility.
He said it demonstrated “continued support of Symbol’s strategy of securing early high-margin cash flow from the Imperial Joint Venture, aggressive exploration of future resources and expanding our current asset portfolio across Nigeria”.
A year’s funding
The funding applies to all product produced by the Imperial JV entity.
Noble’s short-term funding facility applies for up to 12 months, with increased offtake rights during this period.
Noble has been operating in the African country on the Gulf of Guinea for more than 20 years.
Wither said by partnering with Noble, Subiaco-based Symbol could leverage its partner’s strong, established customer base.
Shipments in sight
Mining began at the industrial-size Macy earlier this year.
The company is on-track for first shipments of high-grade zinc and lead products by the end of this quarter.
Symbol tipped that the cashflow generated from mining would allow it to repay debt and fund its exploration activities.
