THE BOURSE WHISPERER: Platina Resources (ASX: PGM) has signed a Heads of Agreement (HoA) with Hunan Oriental Scandium Co. Ltd.
Hunan Oriental Scandium (HNOSC) is China’s largest manufacturer and processor of scandium.
Under the terms of the HoA, the companies will negotiate an Off-take Agreement as well as a Supply, Technology, Processing and Marketing Agreement for Platina’s Owendale scandium project in central New South Wales.
Owendale project location. Source: Company announcement
Platina and HNOSC will negotiate an Off-take Agreement for the supply of five tonnes of scandium oxide at a 99.9 per cent purity grade and at a commercially acceptable price.
Platina indicated in the past four years scandium oxide (99.9% purity) has sold within a range of US$1,400 to US$3,700 per kilogram.
Platina said the two companies will aim to finalise and execute the two agreements within the next three months.
The agreement with HNOSC is Platina’s second HoA with a Chinese manufacturer.
In July Platina announced an agreement with Inner Mongolia Honfine Zirconium Industry Co Ltd (Honfine) for 15 tonnes of scandium oxide at a 99.9 per cent purity grade.
“The HoA with Hunan Oriental Scandium Co. Ltd provides further support for Owendale to achieve its aim to be the leading scandium producer worldwide,” Platina Resources managing director Rob Mosig said in the company’s announcement to the Australian Securities Exchange.
Platina claims Owendale is the highest grade, laterite-hosted scandium deposit discovered globally.
The company considers Owendale offers a stable and potentially large tonnage operation, providing it with potential to export a moderately upgraded concentrate from Owendale for further processing in China paving the way to advance the project to low cost early production.
The Owendale project hosts an Indicated and Inferred Mineral Resource (JORC 2012) of 24 million tonnes of scandium grading 384ppm scandium (at a cut-off of 300ppm scandium) and contains a total in-situ content of 9,100 tonnes of scandium metal.