THE BOURSE WHISPERER: Sheffield Resources (ASX: SFX) has secured a second binding offtake agreement for the future sale of premium zircon from the company’s Thunderbird mineral sands project, in Western Australia.
Sheffield Resources signed the deal with India’s largest ceramic raw materials supplier, Sukaso Ceracolors Ceramics Pvt Ltd.
The agreement is based on a minimum annual supply of 12,000 tonnes of premium zircon.
Sheffield said this represents approximately 24 per cent of the estimated total volume of premium zircon to be produced from Stage 1 of Thunderbird.
Total offtake under binding agreement for Thunderbird premium zircon now stands at approximately 36 per cent of forecast Stage 1 production.
“We welcome the relationship with Sukaso and this agreement continues to demonstrate the high quality premium zircon product to be generated from the Thunderbird project over the 42 year life of mine,” Sheffield Resources managing director Bruce McFadzean said in the company’s announcement to the Australian Securities Exchange.
“With reference to the earlier signed memorandum of understanding which was signed in April 2017, Sukaso requested additional volume from Thunderbird over the contract period.
“We were able to accommodate this, and we are highly encouraged by Sukaso’s commitment to the project.
“With more than one third of our premium zircon for Stage 1 of Thunderbird now under binding agreement, over the coming months we will continue to deliver on our offtake and funding objectives which we commenced in 2017.”