Glencore Support and Offtake Draft
Financial Assistance Agreement
Glencore to assist Quebec Iron and Vanadium in raising not less than US$10 million, either directly or indirectly, in project financing to fund a Bankable Feasibility study on the Mont Sorcier project. Glencore is responsible for supporting US$8MM of this funding.
Initial term of eight (8) years, extendable by mutual agreement, for 100% of annual vanadium rich iron concentrate produced;
Glencore will be granted a life of mine offtake agreement if it provides equity or debt funding for project construction on terms acceptable to Vanadium One;
Quebec Iron and Vanadium retains the right to claw back 50% of the annual offtake, if needed, to secure project development funding; and
Glencore and Quebec Iron and Vanadium have negotiated a price participation agreement in the offtake for any premium secured above the Metal Bulletin 65% iron index price for a given quotational period for the product sold. Glencore is obligated to use commercially reasonable endeavours to secure a value for the contained vanadium.