SMM6, March 29 / PRNewswire-FirstCall-Asianet /-recently, Element 25 (E25) and OM Materials, a wholly owned subsidiary of OM Holdings, have signed a memorandum of understanding that will enable Element 25 to supply manganese concentrate products from its Butcherbird manganese project in Western Australia.
Butcherbird is considered to be the first-class manganese resource in the world, and the current JORC resource exceeds 263 million tons of manganese ore.
"discussions with companies such as OMH highlighted the demand for a high-quality, reliable supply of manganese in Australia," said the managing director of E25.
In the coming months, the two companies will negotiate an off-take agreement as part of the development of the Butcherbird project.
The memorandum of understanding between OMH and E25 is expected to reach a formal binding off-take agreement in the coming months. The final terms of the agreement are subject to further negotiation and will also depend on the results of the ongoing due diligence of the manganese ore in the project.
The final terms have yet to be discussed, but the agreement provides a framework for negotiations involving the binding purchase of 50 to 100 per cent of concentrates from Butcherbird-produced concentrates, pricing, up to five years, and optimization of logistics solutions.
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