Bass Metals secure offtake

Bass Metals has secured an offtake agreement with the world’s largest zinc producer.

Bass Metals has secured Nystar as an offtake partner for its Tasmanian Fossey mine, allowing for production to begin as soon as September.

Bass is also reported to have approached resource financing group RMB Resources to arrange up to $12 million for project financing.

While Fossey only has a relatively small mine life of between two to three years, the offtake arrangement with the world’s largest zinc producer Nystar will allow the Australian miner to develop its larger Hellyer project.

The project, located in North Western Tasmania, is close to Bass’ currently operating Que River mine.

Bass expect to mine 400 000 tonnes of ore from its polymetallic Fossey project, producing approximately 80 000 tonnes of zinc, lead and copper.

The ore will be processed at Bass’ Hellyer plant.

The Fossey mine will be financed via cash flow from its existing Que River mine and debt provided by RMB Resources.

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