New Century Resources Ltd. signed a binding term sheet with Nyrstar NV for a new 5.5-year off-take agreement for the supply of 600,000 dry tonnes of zinc concentrate from the Century zinc project in Queensland, Australia, but did not disclose the financial terms of the deal.
The companies said Feb. 26 that the terms under the deal include a variable tonnage allocation of 250,000 dry tonnes of zinc concentrate for the first 3.5 years, which will increase to 350,000 dry tonnes of zinc concentrate in the last two years, representing 15% and 35% of the scheduled production from the mine.
The company had received an arbitration request over a claim by Nyrstar subsidiary Nyrstar Sales & Marketing AG for the purchase of zinc concentrate from the Century mine under a zinc supply agreement signed in 2007.
Nyrstar agreed to withdraw its arbitration proceeding upon signing a formal off-take deal and a deed of settlement.
The Century mine is on track for initial zinc concentrate production in the third quarter.