TYX locks in offtake
Today, our African lithium Investment and 2022 Catalyst Hunter Pick of the Year, Tyranna Resources (ASX:TYX) announced that it has agreed an offtake with Sinomine.
This offtake was a key condition precedent of the conditional subscription agreement with Sinomine, which could result in Sinomine investing up to a total of AUD$31M in TYX’s project.
The offtake agreement is binding and we see this development out of TYX as evidence of Sinomine’s intent to follow through on its investment which will support TYX’s project development efforts.
The offtake is for 50% of the spodumene and 50% of the pollucite from TYX’s Angolan lithium project.
As per the key terms of the offtake agreement announced today, Sinomine will make an additional US$10M prepayment when the ball mill has been delivered and bolt installed at the location of the mining operation.
So essentially as soon as the mine is up and running this triggers an additional payment to TYX.
Also, if a third party wants to make an offtake offer for TYX’s product the terms allow for Sinomine to match that offer.
TYX also provided the following timeline for the outbound investment regulatory approvals Sinomine needs to get:
What’s next for TYX?
We want to see TYX continue to de risk from a funding perspective by ensuring conditions precedent are progressively satisfied.
Beyond that we’re looking for more drilling:
🔄 2nd drill program
TYX expects this program to start in August
Side note ** While many investors are familiar with lithium, we see TYX’s pollucite as a source of additional upside - pollucite is a mineral that typically hosts cesium - cesium is most commonly used in drilling fluid as well as a range of other tech applications.**
