Sheffield Resources Signs Additional Thunderbird MoUs

THE BOURSE WHISPERER: Sheffield Resources (ASX: SFX) has signed further Memorandums of Understanding (MoUs) for the future sale of premium zircon and zircon concentrate from the company’s Thunderbird mineral sands project in Western Australia.

Sheffield Resources announced the additional MoUs with Nanjing Rzisources International Trading Co. Ltd and Minchem HMP Limited.

The company said the non-binding MoUs represent up to 30 per cent of the estimated total volume of premium zircon and approximately 45 per cent of the zircon concentrate to be produced from Stage 1 of the Thunderbird project.

Nanjing is an enterprise focussed on the delivery of zircon into various market segments in China while Minchem, based in the United Kingdom, is a niche manufacturer of zircon related products, supplying a unique brand of zircon opacifiers to a number of markets worldwide.

The signing of these MoUs, including a cornerstone zircon concentrate supply from Thunderbird, follows the previously announced MoUs and provides Sheffield a global sales network for premium zircon and zircon concentrate from Thunderbird.

Sheffield has now established key offtake relationships across Europe, India and China, taking total offtake volume of premium zircon and zircon concentrate to approximately 70 per cent and 45 per cent respectively from Stage 1 of the Thunderbird project.

“We are pleased to have secured significant interest in the zircon concentrate to be delivered from Thunderbird in addition to the quality premium zircon product,” Sheffield Resources managing director Bruce McFadzean said in the company’s announcement to the Australian Securities Exchange.

“We look forward to working with Nanjing and Minchem over the coming months to conclude binding agreements.

“The opportunity with Nanjing establishes entry to the Chinese market, an important step in the evolution of this company and, combined with MoUs already in place, confirms Thunderbird as a world class source of very high quality products across its 42 year mine life.

“We are also proud to be working alongside Minchem who are a high quality processer of minerals and ceramic raw materials.

“Additionally, negotiations with potential ilmenite consumers are progressing well, following successful test work to optimise the Fe2O3 content of LTR Ilmenite product for the Chinese consumer market.

“We look forward to updating the market on further offtake developments as they occur over the coming weeks.”