THE BOURSE WHISPERER: Sheffield Resources (ASX: SFX) announced a maiden binding ilmenite offtake agreement for the future sale of low temperature roast (LTR) ilmenite from the company’s Thunderbird Mineral Sands project in Western Australia.
Sheffield Resources has signed the deal with Bengbu Zhongheng New Materials S&T Co., Ltd.
The agreement is based on a five-year minimum annual supply of 150,000 tonnes of LTR ilmenite.
This represents approximately 50per cent of the estimated total volume of LTR ilmenite to be produced from Stage 1 of Thunderbird.
“We welcome and value the important relationship that we have established with Bengbu and look forward to further growth opportunities in the future,” Sheffield Resources managing director Bruce McFadzean said in the company’s announcement to the Australian Securities Exchange.
“This binding offtake agreement further demonstrates the quality of products that Sheffield will export from Thunderbird.
“Through this relationship, we are able to target Thunderbird LTR ilmenite as feedstock for the high growth chloride slag market.
“With this agreement now in place, more than 75 per cent of Stage 1 forecast revenue is contracted under binding offtake agreement, covering 100 per cent of our Stage 1 zircon products and 50 per cent of Stage 1 LTR ilmenite.
“Demand for our products remains very strong and we look forward to providing the community and our shareholders with further offtake and project updates in the future.”