SHEFFIELD SIGNS OFFTAKE MOUsWritten on the 5 April 2017 Sheffield Resources Limited ("Sheffield", "the Company") (ASX: SFX) is pleased to advise that it has signed two memorandums of understanding (MOUs) for the future sale of premium zircon from its Thunderbird Mineral Sands Project (Thunderbird), in Western Australia.
The MOUs are non-binding and were signed with an industry leading Indian ceramics company, Ruby Ceramics Pvt Ltd (Ruby), and a well-established European ceramics company, CFM Minerales s.a. (CFM), The signing of these MOUs follows significant product testing and discussions between the parties. The parties intend to finalise negotiations and enter into binding offtake agreements over the coming months. Sheffield is also in negotiations with other potential consumers of its products and will update the market as required. The execution of the MOUs follows the release of the Company's Bankable Feasibility Study (BFS), which confirmed Thunderbird as a world-class mineral sands project capable of producing significant annualised volumes of premium zircon and ilmenite over an estimated mine life of 42 years. Sheffield's Managing Director, Bruce McFadzean, said: "The MOUs have been signed with zircon consumers with a high standing in the industry, confirming Sheffield's capability of supplying the global market with very high quality products once in production. The recent BFS confirms that zircon will represent 62% of the estimated project revenues and we look forward to advancing binding offtake agreements with both Ruby and CFM, as cornerstone premium zircon customers of the Company. "In conjunction with these arrangements, we are working with our financial advisor, Azure Capital, to progress the funding for project development. We are pleased with the progress being made and look forward to providing our shareholders with further offtake and financing updates in the near future." |
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