TMT 0.00% 26.0¢ technology metals australia limited

Ann: MOU WITH SUBSIDIARY OF CHINA NONFERROUS METAL MINING GROUP, page-2

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    KEY TERMS DEFINED IN THE TMT – CNMNC MOU
    The MoU between TMT and CNMNC establishes a framework for ongoing discussions and negotiations aimed at delivering a definitive and binding offtake agreement (“Agreement” over the coming months. Key terms that have been defined and agreed upon in the MoU are:
    • Initial minimum annual quantity of V2O5 to be purchased of 2,000Tpa on a take-or-pay basis,
    • CNMNC to purchase such quantity of product that is available, up to 2,000Tpa, during the
    ramp-up and commissioning phase of the Project,
    • Pricing to be negotiated based on the Metal Bulletin V2O5 Pricing Index incorporating a floor
    and ceiling price structure,
    • Sales to be based on FOB at Port of Fremantle or similar,
    • Minimum term of three (3) years with an option to renew for an additional three (3) years, and
    • Consideration for CNMNC to refer TMT to its parent entity, CNMC, to discuss additional Project
    support, including scope for financing and/or EPC arrangements
    The next steps to progress towards finalising the Agreement include due diligence to be completed by both parties in conjunction with the progression of the **anintha Definitive Feasibility Study (“DFS” and further refinement and agreement of the key off take terms.
    The MoU is effective until 1 October 2019 unless the parties mutually agree to formally terminate or extend the term.
 
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