Auxico Resources Canada Inc. announced the signing of an offtake agreement with the company Cuex Metal AG, for the purchase of commercial tin concentrates (cassiterite) from the Company's Massangana Tin Tailings project located in the state of Rondonia, Brazil. The agreement represents a purchase of 3,600 tonnes per year, over a period of five years, for a total of 18,000 tonnes of commercial tin concentrates. At current London Metal Exchange prices, the material is valued at USD 330 million.

Cuex is the Swiss subsidiary of Shangai Qunxian Industrial (Group) Co. Ltd., a bulk commodity Chinese trading company. Auxico intends to build a 2,500 tonne per day processing facility in Rondônia that will produce on a yearly basis: 6,000 tonnes of cassiterite, 90,000 tonnes of ilmenite, 13,500 tonnes of columbite, 90,000 tonnes of zirconium and 37,500 tonnes of monazite.

A recent economic forecast commissioned by the Company and prepared by the Brazilian independent company PrimeStar has projected yearly revenues of USD 300 million, and an annual EBITDA of USD 198 million. The Company is in the process of negotiating additional offtake agreements for cassiterite, columbite, zirconium and rare earths. The start of commercial production is planned for the second quarter of 2023.