Auxico will provide the working capital to concentrate and export the tantalite ore from the DRC
Auxico Resources Canada Inc. ((CSE: AUAG), “Auxico” or the “Company”) is pleased to announce that it has signed a joint venture agreement with Kibara Minerals (“Kibara”) for the concentration and export of tantalum and niobium ores from the Democratic Republic of the Congo (“DRC”).
Kibara has access to high-grade tantalite mineral deposits in the DRC. More specifically, Kibara has an exclusive supply agreement with a cooperative for the purchase of tantalite ore from the Bafwasende artisanal deposit located 200 km from the city of Kisangani in the north-central part of the DRC.
Tantalite ore from the Bafwasende deposit has been tested by two groups. Impact Global Solutions, based in Delson, Quebec, performed laboratory tests on samples from the Bafwasende despoit, which produced the following grades: 46% Ta2O5 (tantalum pentoxide) and 22% Nb2O5 (niobium pentoxide). One of the Company’s potential buyers of this tantalite ore performed its own tests, which resulted in 42.04% Ta2O5 and 22.93% Nb2O5. Auxico is finalizing a long-term supply agreement with this party for the sale of specific quantities of tantalite ore per year.
Given this opportunity, both Auxico and Kibara wish to work together to launch the trading operation of tantalum and niobium-bearing ores from the Bafwasende deposit. Kibara has the local connections and expertise in the DRC. Auxico and its partner Covemin, which is a commodities trading firm in Europe with an expertise in tantalum and niobium, have established relationships with the buyers of tantalite ore worldwide. As both parties complement each other, it seems logical to form a joint venture.
Under the terms of the joint venture, Auxico will provide the working capital to concentrate and export the tantalite ore from the DRC. This will include the purchase of the ore from the cooperative, transportation of the tantalite ore from Kisangani to the port of Matadi, warehousing, sampling and shipping. In return, Auxico will receive 70% of the profits from the sale of the ore, while Kibara will retain 30%.
The DRC has the largest known reserves of tantalite ore in the world. The ore from the Bafwasende deposit is extracted from a traceable non-conflict artisanal site. Both tantalum and niobium are on the list of critical minerals of the United States government. Tantalum is used specifically in electrolytic capacitors for the electronics industry. Niobium is used in steel superalloys. Recently, the price of tantalum was US$165,000 per metric tonne and the price of niobium was US$40,000 per MT.
Source: Company Press Release