PERTH (miningweekly.com) – ASX-listed Doray Minerals has signed an offtake agreement for the commercial supply and sale of gold/copper/silver concentrate from its Deflector project, in Western Australia.
The gold miner on Wednesday said that the agreement, with MRI Trading, came after a lengthy negotiation period, with a number of parties expressing interest in the Deflector product.
“We are very pleased to have negotiated this agreement with MRI and to have secured very favourable commercial terms,” said Doray MD Allan Kelly.
“There was a high level of interest in the Deflector concentrate with the negotiation process providing strong validation of the expected quality of the product.”
The agreement with MRI covered all of the concentrate produced at Deflector over its initial six-year mine life, and incorporated standard renewal provisions, as well as a number of other commercial terms and conditions typical of such an agreement.
Deflector, which was due to start production in mid-2016, was expected to produce 1 972 oz of gold from its openpit operation and a further 348 592 oz of gold from its underground mine.
Meanwhile, Doray also appointed fellow-listed Pacific Energy to build, own and operate a 7 MW dual-fuelled power station at the Deflector project.
The contract would run for an initial five-year period, with options to extend.
Work on the power station would start immediately, with commissioning scheduled for April.
Edited by: Creamer Media Reporter
EMAIL THIS ARTICLE SAVE THIS ARTICLE
To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
