- Consolidated Zinc (CZL) subsidiary enters an offtake agreement for the sale of 100 per cent of the lead concentrates from the Plomosas Zinc Project for 2022
- The agreement was signed with Metco Trading S.A. de C.V. and the company’s Mexican subsidiary, Minera Latin American Zinc SAPI de CV (MLAZ)
- Through the agreement, Metco will purchase 100 per cent of lead sulphide concentrates and lead oxide concentrates from Plomosas
- Fixed treatment charges will be in place for 2022, including new lead oxide concentrates due to begin production in the first quarter of 2022
- Consolidated Zinc last traded at 2.8 cents on December 16
Consolidated Zinc’s (CZL) Mexican subsidiary has entered an offtake agreement for the sale of 100 per cent of the Plomosas lead concentrates for 2022.
The Plomosas Zinc Project is 100 per cent owned by Consolidated Zinc, and covers more than 3,000 hectares in the northern Mexican state of Chihuahua, around 350 kilometres from Mexico’s border with Texas. The company said the plant has the capacity to operate at 300 tonnes per day.
The agreement was signed with Metco Trading S.A. de C.V. and the company’s Mexican subsidiary, Minera Latin American Zinc SAPI de CV (MLAZ).
Metco is a Latin-America metals trading entity which speciliases in the purchase of zinc and lead concentrates from Latin America.
Through the agreement Metco will purchase 100 per cent of lead sulphide concentrates from Plomosas. Lead sulphide concentrates from the project are considered high-quality, with very low levels of deleterious impurities which minimises treatment charges.
Metco will also purchase lead oxide concentrates from Plomosas, a new lead concentrate product from the project which is due to begin production during the first quarter of 2022.
Fixed treatment charges will be in place for 2022, which will include the new lead oxide concentrates.
Consolidated Zinc last traded at 2.8 cents on December 16.