Sheffield Resources Inks Third Thunderbird Offtake MoU

THE BOURSE WHISPERER: Sheffield Resources (ASX: SFX) signed a further memorandum of understanding (MoU) for the future sale of premium zircon from the company’s Thunderbird mineral sands project in Western Australia.

Sheffield Resources said the non-binding MoU was signed with Sukaso Ceracolors Pvt Ltd, India’s largest ceramic raw materials supplier and will account for approximately 20 per cent of the estimated total volume of premium zircon to be produced from Stage 1 of the Thunderbird project.

Sheffield said the signing of a third MoU demonstrated the strong level of interest it is receiving from potential customers and offtake partners within Europe and India in the product to be delivered from Thunderbird.

 The deal follows the recent announcement of MoUs signed with Ruby Ceramics Pvt Ltd of India and CFM Minerales s.a. of Spain, taking total offtake volume of premium zircon to approximately 40 per cent of expected production from Stage 1 of the project.

“We welcome the cornerstone relationship with Sukaso and look forward to concluding binding agreement in the coming months,” Sheffield Resources managing director Bruce McFadzean said in the company’s announcement to the Australian Securities Exchange.

“Establishment of these important relationships speaks volumes for the scale and quality of Thunderbird across the expected 42 year life of mine.

“Consumers are clearly positioning themselves to identify potential long term sources of supply for premium zircon product, and the MoU signed with Sukaso confirms Thunderbird’s capability and unique market position as a future source of very high quality products.”