Key Highlights
- Boron One signed a binding three-year offtake agreement with a Singapore-based distributor.
- The deal covers future sales of ulexite, boric acid and borax, with annual tonnage options.
- The contract starts only after facilities are operational and permits and approvals are received.
Boron One Holdings Inc. (TSXV: BONE) has entered a binding three-year offtake agreement with a Singapore-based global distribution company for the future sale of boron mineral concentrates and derivative boron products.
The agreement is Boron One’s second binding offtake arrangement, and the company said it is expected to support efforts to secure strategic partners and project financing as it develops its operations.
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Under the agreement, the buyer committed to purchase 50,000 tons of ulexite concentrate per year, with an option to increase to 60,000 tons per year. The buyer also committed to buy 50,000 tons per year of boric acid and 50,000 tons per year of borax (5 mol), each with an option to increase to 60,000 tons per year.
The agreement also includes purchases of up to 20,000 tons per year of colemanite concentrate, but with no minimum purchase commitment.
Boron One said the three-year term will begin once its production facilities become fully operational. Pricing is to be based on prevailing market prices and adjusted annually, and the agreement includes a minimum floor price formula and take-or-pay provisions tied to certain annual purchase shortfalls.
The company also disclosed that it retains the right, at its sole discretion, to elect not to supply some or all of the agreed quantities of boric acid and/or borax. The buyer received a non-exclusive right to market and sell the products to customers in certain Asian countries.
The agreement remains subject to conditions precedent, including completion of Boron One’s planned mining and processing facilities and receipt of all permits, licences, and regulatory approvals needed to start commercial production and operations.
Boron One described the buyer as a Singapore-based global distribution company with a history in boron product sales, including wholesale distribution of industrial chemicals and chemical fertilizers.
The original press release is available on stockhouse.com
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