Mongolian-based copper-gold explorer and future mine developer Xanadu Mines (ASX:XAM) on Thursday executed a non-binding Memorandum of Understanding (MOU) for as much as 120MW of gasoline offtake from close by peer Jade Gasoline (ASX:JGH).
That 120MW capability is meant to energy Xanadu’s upcoming Kharmagati copper-gold challenge additionally positioned in Mongolia’s South Gobi desert area.
Whereas the contract is non-binding, its common intention is for Jade’s future TTCBM pure gasoline challenge, positioned some 80km south-west, to offer gasoline to the Kharmagati Undertaking.
The Kharmagati Undertaking is predicted to boast a 30 yr mine life.
On Wednesday, it was additional supported by Chinese language mining big Zijin to the tune of $35m, a Chinese language publicly listed firm with a market cap of $58bn.
The curiosity of the Chinese language heavyweight is a recurring theme for ASX smallcaps working in South Gobi.
Beneath the present MOU, Xanadu has a non-exclusive choice for gasoline provide from Jade’s future TTCBM gasoline play.
Nonetheless, Xanadu Mines notes the 2 firms are actually coming into negotiations to work in direction of a legally binding MOU offtake settlement which can lock in future vitality provide as an operational certainty.
Xanadu Mines expects to see that binding settlement revealed after Jade launches its TTCBM pilot plant manufacturing program in some unspecified time in the future in 2023.
Pure gasoline higher than coal
“The Kharmagtai Copper-Gold Undertaking within the South Gobi desert will probably be Mongolia’s subsequent world class copper mine which will probably be designed to particularly minimise scope one emissions,” Xanadu Mines boss Colin Moorhead stated.
Scope one emissions, in ESG vernacular, are emissions created instantly on the location of a challenge.
“This kinds a crucial a part of our renewable future, and we’re decided to supply our vitality from inside Mongolia,” Moorhead added.
“Topic to the outcomes of the pre-feasibility research, we stay up for working with the Jade workforce to place in place a long-term gasoline contract.”
Jade Gasoline boss Chris Jamieson echoed Moorhead’s sentiments.
“The MOU with Xanadu demonstrates the clear demand for brand new and cleaner sources of vitality on our doorstep,” he stated.
A take a look at Xanadu Mines’ six month charts
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