Blackham Resources Limited (ASX: BLK) and Polymetal International plc have executed a sales contract for all of the non-committed Gold Concentrate for Blackham’s Stage 1 Expansion project in Western Australia, for the first three years of production.
Blackham and Polymetal have also entered into a Strategic Alliance for Gold Concentrate Project Development and Supply.
Polymetal International plc is a top-20 global gold producer and top-five global silver producer with assets in Russia and Kazakhstan. The company is a member of FTSE 100, FTSE Gold Mines and MSCI Russia indices.
It is a world leader in refractory ore processing utilising Pressure Oxidisation (POX) techniques.
Blackham’s Executive Chairman, Milan Jerkovic, said key objectives of the Strategic Alliance with Polymetal include:
- Establishment of a process of a two-way technical and market data exchange in respect of potential expansion of Wiluna Gold Concentrate production and sales;
- Long term, as long as the Alliance continues, Polymetal will be appointed as an agent for 100% of Wiluna concentrate (agent or principal) providing concentrates market and pricing visibility to Blackham;
- The Alliance has established the principle that Blackham and Polymetal will work cooperatively to investigate and achieve joint business development opportunities for gold concentrate production from other sulphide deposits in the West Australian Goldfields.
Mr Jerkovic said that establishing a relationship with Polymetal is a significant milestone for Blackham and its stage 1 growth plans.
“And then entering into an ongoing alliance agreement with a significant global counterparty such as Polymetal provides a technical and strategic pathway for the company’s vision to develop its sulphide deposits.
“Longer term this will enable the company to expand its production from Wiluna and consider other regional opportunities.
“We look forward to working with and developing the relationship with a partner that will help provide a sustainable and commercial outcome for the Wiluna Goldfields,” Mr Jerkovic said.