MONTREAL, March 30, 2022 /CNW Telbec/ - Auxico Resources Canada Inc. (CSE: AUAG) is pleased to announce the sales agency agreement with Central America Nickel ("CAN") with regard to the exclusive trading rights for rare earth concentrates currently being exported from the Democratic Republic of Congo ("DRC").
The first shipment of 98 tonnes of rare earth concentrates from the DRC has been exported by CAN as of March 10, 2022 at an average price of US$ 5,700 per tonne. CAN has obtained all the required permits and agreements in order to carry out the export of the rare earth concentrates from the DRC. The next shipment is scheduled in two weeks, and is expected to be for a total of 150 tonnes of rare earth concentrates with the objective of increasing the purchase to 1,000 tonnes of concentrates per month.
As the exclusive sales agent, Auxico will retain a commission equal to 15% of the sales price, on every sale generated over the next two years by making a one-time payment of US$ 1,000,000 to CAN. Under the terms of the agreement, Auxico will develop, expand and maintain a sales network to solicit orders for the sale of the rare earth concentrates from the DRC, while CAN will provide financing and banking facilities, and warehousing and distribution facilities in order to fulfill the orders.
CAN is in the process of finalizing a joint venture with the Congolese state-owned company Sakima S.A. The joint venture company will own a 160 square kilometre mining concession that has been the object of a geological NI 43-101 report prepared by Groupe RD Consultants. The report is available on the Auxico's website.
CAN is currently purchasing rare earth concentrates from a number of various cooperatives in the province of Northern Kivu. The ores represent non-radioactive monazite sands.
Auxico will be able to offer to its sales network rare earth concentrates from diversified sources originating from Colombia, Brazil and the DRC.
About Auxico Resources Canada Inc.
Auxico Resources Canada Inc. ("Auxico") is a Canadian company that was founded in 2014 and based in Montreal. Auxico is engaged in the acquisition, exploration and development of mineral properties in Colombia, Brazil, Mexico, Bolivia and the Democratic Republic of the Congo.
Additional information on Auxico can be found on the Company's website (www.auxicoresources.com) or on SEDAR (www.sedar.com) under "Auxico Resources Canada Inc."
ON BEHALF OF THE BOARD OF DIRECTORS
« signed » « signed »
Pierre Gauthier Mark Billings
CEO, Auxico Resources Canada Inc. President, Auxico Resources Canada Inc.
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