Avanti Mining Inc. (CVE:AVT) reports that it has entered into an off-take commitment letter with a Asian Steel producer.
The press release is quoted as saying:
This represents approximately 10% of the expected average annual production from the Kitsault mine during the term of the agreement. The Strategic Partner has the option to increase the off take quantity from 10% up to 20% of the total annual production from the Kitsault mine.
A J Ali, CFO of Avanti Mining says:
“This is a significant first step in Avanti’s strategy to sell up to 30% interest in Kitsault to fund the development of the project. Discussions are under way with several other parties for the remaining 20% Kitsault partnership interest. The assistance in arranging 50% of debt is very important because it facilitates arranging the balance of project financing needs of Kitsault. The Strategic Partner is a significant player in the global molybdenum market. This marks the beginning of what we hope will be a mutually beneficial long-term relationship.”