THE BOURSE WHISPERER: Sheffield Resources (ASX: SFX) has secured a maiden binding offtake agreement for the future sale of premium zircon from the company’s Thunderbird mineral sands project in Western Australia.
Sheffield Resources said the agreement had been struck with Ruby Ceramics Pvt Ltd , which it described as , “a highly respected, industry leading Indian ceramics company”.
The deal is based on a minimum annual supply of 6,000 tonnes of premium zircon, for an initial three year period, which represents approximately 12 per cent of the estimated total volume of premium zircon to be produced from Stage 1 of Thunderbird.
“The Agreement with Ruby Ceramics provides a strong endorsement of Thunderbird and the quality premium zircon product to be generated from the 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.
“This maiden binding offtake agreement is a milestone achievement for Sheffield and is an important de-risking step as we progress project development.
“We welcome this relationship with Ruby and remain steadfast in delivering our offtake and funding objectives over the coming months.
“Negotiations continue towards signing binding agreements with counterparties who have already signed non-binding memorandums of understanding (MoUs) in relation to the sale of premium zircon and zircon concentrate and Sheffield’s high-quality low-temperature roast (LTR) ilmenite.
“Collectively these agreements account for an estimated 70 per cent of premium zircon, 45 per cent of zircon concentrate and 45 per cent of LTR ilmenite products from Stage 1 of Thunderbird.”