Nimy Resources (ASX:NIM) signed a nonbinding memorandum of understanding with US-based M2i Global for the sale of gallium from Nimy's Block 3 discovery in Western Australia, according to a Monday Australian bourse filing.

M2i will seek to provide funding options for Block 3 and introduce Nimy to relevant third-party firms and government agencies, which may assist with the project. M2i was also granted exclusive rights to negotiate the purchase of 100% of gallium-bearing concentrates from the Mons project for delivery to the US, subject to agreeing on commercial terms.

Nimy and M2i will now collaborate to form commercially binding contract terms for the respective sale and purchase of a portion of gallium production. The parties will negotiate a formal offtake agreement within 12 months or upon M2i securing a US government award, whichever is earlier.