Alara Resources (ASX:AUQ) pens exclusive offtake agreement with Trafigura

• Alara Resources (AUQ) signs an exclusive offtake agreement for its Oman copper and gold project between its JV subsidiary and independent logistics business, Trafiguara
• The long-term agreement covers the production of copper concentrate from its Wash-hi Majaza project
• Trafigura will purchase the full output of copper concentrate from the project for eight years from the start of production, based on the official London Metal Exchange cash settlement quote for Grade A copper
• Alara also obtains a US$3.45 million finance facility from Trafigura to fund the completion of the project
• Shares are up 12 per cent, trading at 2.8 cents at 1:16 pm AEST

Alara Resources (AUQ) has signed an exclusive offtake agreement for its Oman copper and gold project between its JV subsidiary and independent logistics business, Trafiguara.

The long-term agreement covers the production of copper concentrate from its Wash-hi Majaza project.

The project has three explorational licenses, one mining license and a copper concentrate plant which is under construction with the capacity to process one million tonnes of copper per year once finished.

Trafigura will purchase the full output of copper concentrate from the project for eight years from the start of production with the pricing based on the official London Metal Exchange cash settlement quote for Grade A copper at the time of the delivery.

Alara has also obtained a US$3.45 million ($5.10 million) finance facility from Trafigura to fund the completion of the project.

AUQ was up 12 per cent, trading at 2.8 cents at 1:16 pm AEST.