Tertiary Minerals plc (LON:TYM), which saw its shares surge higher on Friday, said after the close that it was not aware of any other reason for the movement other than the recently announced memorandum of understanding (MoU) signed with global commodities group Possehl.
The MoU provides for the companies to enter into an offtake agreement to support Tertiary’s three fluorspar projects.
However, the group said on Friday a definitive offtake agreement is subject to further negotiation with Possehl, and the detailed commercial terms have yet to be agreed.
“There can be no guarantee that an offtake agreement will be entered into,” Tertiary Minerals said.
Under the offtake agreement, Possehl would take at least 70% of commercial grade acid-spar produced at Storuman in Sweden; Lassedalen in Norway; and MB in Nevada.
Possehl, which is part of commodities business Cremer, would provide funds to develop the deposits and for any acquisitions Tertiary may make to bulk them up.
Tertiary would also receive logistics and infrastructure support from the German-based group while the projects are developed.
The MoU will be effective until one of Tertiary’s projects has been in production for a year or a formal offtake agreement is signed.