(Alliance News) - Marula Mining PLC on Thursday updated on its planned sales from producing columbite-tantalite, feldspar and other by-product minerals from the Blesberg mine in South Africa.
The Africa-focused mining and development company said this followed its wholly-owned South African subsidiary South African Lithium & Tantalum Mining (Pty) Ltd signing a long-term offtake agreement with metals, minerals and energy commodities trading group Fujax UK Ltd for 100% of the lithium bearing ore and concentrate production from Blesberg.
Marula said deliveries to Fujax under the agreement are scheduled to begin in May 2024 and continue through to the end of 2026, with an option to extend deliveries by a further three years.
Marula also confirmed that it is now progressing sales agreements with Fujax and a number of additional parties in South Africa for the sale of its production of other by-product minerals.
This includes tantalum, feldspar and mica that are extracted through Marula's existing processing and XRF sorting equipment and planned expansion to the processing plant in the second quarter 2024.
Marula expects the sales agreements to be concluded, and first sales and revenue to be received from the sale of the by-product minerals late in the second quarter of 2024.
"Blesberg has such a valuable assortment of minerals that extend beyond just the lithium bearing ores. We know that Blesberg was one of the major producers in South Africa of tantalum and we believe there is an opportunity through the sale of the coltan mineralisation that has been identified at the mine to materially enhance the project economics by concluding a standalone offtake agreement for this by-product of the lithium mining activities," said Marula General Manager Henk van Zyl.
"In addition with the completed sampling program, we are also awaiting assay and metallurgical results on the feldspar mineralisation that is present at Blesberg. Historically there has been sales of this material from Blesberg into the local South African market and sales of these minerals continues from other operations in the Northern Cape."
Shares in Marula Mining closed up 2.6% to 9.07 pence each on the Aquis Stock Exchange in London on Thursday.
By Greg Rosenvinge, Alliance News senior reporter
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