US gallium deal opens Block 3 development path for Nimy

• Nimy signs MoU for the sale of gallium to M2i Global
• M2i Global is a leading US critical minerals provider
• The agreement includes introduction to other groups for potential support

Special report: Nimy Resources has opened the door to a major opportunity through a non-binding agreement with US critical minerals group M2i Global to supply gallium from the Block 3 discovery of its Mons project in WA.

The MoU could bring more than offtake benefits, with M2i set to explore funding options and introduce Nimy (ASX:NIM) to key government and corporate players like the Department of Defense and Department of Energy.

M2i’s primary purpose is the sourcing of critical metals and strengthening the critical metal supply chain within the US.

There’s also potential for sales into the US defence sector, as the two groups work towards a binding commercial arrangement.

M2i has an initial six-month due diligence window, extendable if required, during which it will review Nimy’s metallurgical data and operations, before moving toward a formal offtake deal within 12 months or sooner if a US Government award is secured.

Importantly, exclusivity for US-bound gallium sales would apply for the life of the Mons project once shipments or government nomination begin.

This MoU builds on earlier collaborations between the two and positions Nimy to tap into the surging global demand for gallium, a critical mineral essential for semiconductors, aerospace and defence, solidifying its role as an emerging supplier to the US critical minerals supply chain.

“Pivotal moment”

NIM managing director Luke Hampson said signing this MoU with M2i Global represented a pivotal moment for Nimy as the company advanced the Mons project towards production.

“This partnership not only validates the quality of our pending gallium resource definition but also positions Nimy to play a critical role in supplying the US market with this strategically important mineral,” he said.

“We look forward to collaborating with M2i to unlock the full potential of the Mons Project and deliver value to our shareholders.”

Gallium scale with exploration target up to 1068 tonnes contained gallium

Nimy has a commanding footprint across 3004km2 of the Mons greenstone belt, just north of Southern Cross, with a string of exciting prospects waiting in the wings.

Earlier this year, the company made its gallium discovery at Block 3, where drilling has consistently delivered grades above 100g/t gallium, momentum that’s now driving work on a maiden resource estimate.

Adding to the upside, Mons already carries an exploration target ranging from 373 to 1068 tonnes of contained gallium, hinting at the scale of potential still to be unlocked as exploration pushes ahead.

Work begins on binding agreement

M2i Global CEO Al Rosende said the company was excited to partner with Nimy to secure a reliable, high-quality source of gallium for the US.

“This MOU underscores our commitment to building a robust critical minerals supply chain, and we are eager to support the development of the Mons Project through financing and strategic collaborations, including potential US Government involvement,” he added.

Nimy and M2i are moving into due diligence and detailed negotiations as they work toward a binding offtake agreement, zeroing in on key commercial terms such as pricing, quantities and delivery logistics.

At the same time, Nimy is pushing ahead with development of the Mons Project, focused on securing the required permits and funding to stay on track with the timelines set out in the MoU.

This article was developed in collaboration with Nimy Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.