Superior Lake Resources Ltd. confirmed a Sept. 28 media report by The West Australian that it received nonbinding indicative proposals from Glencore PLC, Trafigura Pte. Ltd. and IXM BV for off-take agreements for its namesake zinc project in Ontario.
The company said Oct. 1 that off-take discussions are ongoing and it has not received a formal offer.
The company added that the start of production at the project is forecast to align with a significant drop in production from other North American zinc operations, which means that unless those operations expand or other development projects are brought into production, smelters will have to look for new zinc supply from offshore operations.
In August, a bankable feasibility study on the Superior Lake project outlined a net present value of US$115 million, discounted at 8%, with a 27% internal rate of return.
Superior Lake also recently received nonbinding indicative proposals of between US$50 million and US$70 million from global banks and resource funds to finance the zinc development.
