Thor close to signing offtake deal 22-November-07 by AAP West Perth-based tungsten-molybdenum miner Thor Mining Plc expects to sign an offtake agreement for tungsten and molybdenum from its Molyhill project by the end of the year, the firm said today.
Offtake agreements give mining firms a stable income in return for the industrial minerals they produce.
"We are in negotiations with three parties," chief executive John Young said.
"All want 100 per cent offtake, and we hope to agree with one before Christmas."
The three firms in talks with Thor are all commodities trading houses - one British, one Chinese, and one based in Hong Kong, Young said, speaking to Reuters on the sidelines of the annual Mines and Money conference.
Both tungsten and molybdenum are used as additives to steels for petrochemical, engineering and other hi-tech uses.
"The basic terms and conditions are fine. It's just pricing which is the argument," Young said.
Once Thor has an offtake deal in place, the firm will find it easier to secure full financing for the Molyhill project in Australia, which Young estimated would cost $A63 million to bring to production.
Thor aims to bring Molyhill to production by early 2009.
Giddyup .....cheers Salsa
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