Zimbabwean Bindura Nickel Corporation signs off take agreement with Glencore

AIM listed exploration company Mwana Africahas announced that Bindura Nickel Corporation (BNC), in which Mwana has an interest of 52.9%, havertical shaft engine go karts entered into an off-take agreement with Glencore International AG. The agreement will cover all the nickel concentrate to be produced following the re-start of operations at the Trojan Mine.

The required regulatory approvals in Zimbabwe have been received for the off-take agreement. In a press release, the South Africa and Zimbabwe focusedcompany highlighted that BNCwill sell all nickel concentrate produced at the Trojan Mine, until the Bindura smelter and refinery are re-started, to Glencore. Glencorewill alsopay BNC a London Metal Exchange linked nickel price on agreed terms for final contained Nickel.Once financing is secured to enable the restart, BNC expects to recommence mining at Trojan, initially at a rate of 10,000tpm ramping up to 70,000tpm over a period of 12 months.

OnceTrojan Minehas achieved a steady state, BNC expects to mine about 870,000 tonnes of ore per year, at an average head grade of 0.90%. After processing, BNC expects to produce concentrate containing 7,000 tonnes nickel per year at steady state.

Kalaa Mpinga, CEO of Mwana commented: "The off-take agreement with Glencore is a very significant step toward the re-start of operations at the Trojan Mine and, in due course, unlocking the unique potential of Bindura’s other nickel assets. We look forward to working with Glencore to deliver long-term shareholder value following their re-start."