BAUBA Platinum has concluded a chrome ore offtake agreement with privately-held commodity trader, Gerald Metals, and Pelagic Resources, which includes an upfront $5m cash prepayment – funds Bauba would use for further growth, or to finance an acquisition, or development of new mines in its portfolio.
In return for the prepayment from Gerald Metals and Pelagic Resources, Bauba would supply 250,000 tonnes of run-of-mine production from its Moeijelijk Mine.
“This financing and offtake agreement will further enhance Bauba’s future profitability. Geralds’ commitment to pre-finance and trade Bauba’s chrome ore production is a significant vote of confidence in the future prospects of our company,” said Nick van der Hoven, CEO of Bauba Platinum, in an announcement.
Pelagic Resources has been marketing Bauba’s chrome production for the past 18 months. Gerald Metals, meanwhile, has some $3bn in assets and books $10bn in revenue. Bauba said it had previously been purchasing on a spot basis from it via Pelagic Resources. As a result “… this transaction complements Gerald’s raw material books and its overall marketing strategy”, it said in its announcement.