Critical Mineral Resources PLC (LSE:LON:CMRS) has signed its first offtake contract in Morocco with an agreement to buy high-grade antimony ore from a small-scale operator.
Through the renewable six-month deal, CMR will purchase all crude ore mined at this source, a semi-massive stibnite (antimony sulphide / Sb2S3) product.
CMR adds that the antimony metal price has more the trebled over the past year due to an acute shortage of supply, primarily reflecting export restrictions from China, where 48% of global stibnite ores and concentrate originate.
Antimony trading is expected to generate an above-average gross profit margin compared with other metals, CMR added.
UK-listed CMR recently set up a trading arm in Morocco to provide cashflow while it searches for development projects in the country.
Charlie Long, chief executive, added: “Not only will the commodities trading generate cash for the business, it will also add to our already excellent deal flow.
“In this way CMR will exploit its unique position as an integrated mine developer and commodities trader, always focusing on delivering value for shareholders.
"We anticipate entering into more trading agreements over the coming weeks".