Alara Resources Limited, an Australian minerals exploration company with projects in Saudi Arabia and Oman, has signed an off-take agreement for the supply of copper concentrate from Al Hadeetha Project in Oman?s Washihi Reserve
The company has entered an agreement with Statdrome PTE Ltd, who has more than 15 years? experience in non-ferrous concentrates trading, including copper sales in and out of Oman.
Under the agreement, annual concentrate production of approximately 35,000 wet metric tonnes (wmt) will be shipped at regular intervals from the Sohar Port. There also exists the possibility of supplying the material to the Omani smelter in case it restarts. However, the project financial model allows for sea freight and other charges associated with the sale of concentrate from the port at Sohar, Alara Resources Limited sources said.
The agreement also includes a pre-payment of US$6mn to assist in funding project construction costs and mine start up, and will be drawn down in instalments during the project construction phase, starting once the mining licence is issued.
The agreement forms an important part in financing and development of the mine and processing plant at Washihi, and has been completed in discussion with bank representatives.
