SHEFFIELD SIGNS CORNERSTONE ILMENITE MOU
Written on the 30 May 2017
Sheffield Resources Limited is pleased to advise that it continues to successfully advance offtake arrangements for the 100% owned Thunderbird Mineral Sands Project (Thunderbird), in northern Western Australia, with the signing of a cornerstone non-binding Memorandum Of Understanding (MOU) for the future sale of high quality low temperature roast (LTR) ilmenite.
The maiden LTR ilmenite MOU was secured with the premier Chinese manufacturing entity CNNC Huayuan Titanium Dioxide Co. Ltd (CHTi), which invests in the research, development and production of titanium dioxide and iron oxide pigments. The agreement with CHTi represents approximately 45% of the estimated total volume of LTR ilmenite to be produced from Stage 1 of the Thunderbird project.
This MOU follows a succession of similar agreements executed in April 2017 in relation to the Company's premium zircon and zircon concentrate products, confirming
Thunderbird as a world class mineral sands project capable of producing globally significant annualised volumes of zircon and ilmenite over a 42 year mine life.
Sheffield's Managing Director, Bruce McFadzean, said:
"Sheffield Resources welcomes CHTi as a cornerstone customer for our high quality Thunderbird LTR ilmenite product. Coupled with the zircon MOUs executed earlier this quarter, this agreement confirms Sheffield's high quality product capability when in production. The recently completed Thunderbird Bankable Feasibility Study showed LTR ilmenite will generate 29% of the estimated project revenue. We look forward to concluding a binding offtake agreement with CHTi and establishing a long-term business relationship going forward.
"The industry is seeing sustained improvement in zircon and ilmenite commodity prices throughout 2017. We are pleased with the market demand shown for the range of products to be produced from Thunderbird, and we are equally pleased by the progress being made on financing arrangements. We look forward to providing our shareholders with further offtake and financing updates in the near future."
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