New Century Resources: NCZ Executes Binding New Long Term Offtake With Nyrstar
West Perth, WA / February 26, 2018 / JMN Wire / New Century Resources (ASX: NCZ) (“New Century”) are pleased to announce the execution of a binding term sheet for a new 5.5 year offtake agreement covering 600,000 dmt of zinc concentrate produced from the Century Zinc Mine in Australia.
The term sheet for offtake includes a variable tonnage allocation to Nyrstar of 250,000 dmt of zinc concentrate for the first 3.5 years, rising to 350,000 dmt for the final two years of the offtake agreement. This represents approximately 15% and 35% respectively of the scheduled production. New Century remains on track for its first zinc concentrate production in Q3 2018. Terms of the offtake remain confidential but are highly attractive to both parties.
Commenting on the new agreement, New Century Executive Chairman Evan Cranston, said:
“New Century is pleased to establish this offtake with Nyrstar, which is the world’s second largest direct end user of zinc concentrate with smelters located around the world. The term of the agreement, covering 5.5 years, clearly demonstrates the robust demand for Century zinc concentrate. New Century looks forward to building a long term mutually beneficial relationship between the parties.”
Nyrstar Chief Executive Hilmar Rode, added:
“Nyrstar has traditionally been a significant long term user of Century zinc concentrate. We are very pleased to have secured a new long term supply agreement and are looking forward to continue our long standing successful relationship with the Century Zinc Mine and its new owners New Century Resources.”