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Mayur signs 1st off-take deal for iron sands from Orokolo Bay

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Mayur signs 1st off-take deal for iron sands from Orokolo Bay

Mayur Resources Ltd. entered into its first binding off-take agreement for vanadium titano-magnetite iron sands product from the Orokolo Bay industrial mineral sands project in Papua New Guinea.

The company said March 13 that the agreement with Qingdao Shinebest is conditional upon the successful trial of a 25,000-tonne bulk sample from the project's stage-one pilot plant.

After the product quality is accepted and once the project is expanded to full-scale production, the parties will enter into off-take of a minimum of 200,000 tonnes per annum for an initial two years, with annual contract extensions thereafter.

Managing Director Paul Mulder said the company is seeking to enter into similar agreements to secure future product orders for the project. This first off-take is for up to 40% of the iron sands production from Orokolo Bay.

The company secured up to US$25 million in funding from China Titanium Resources Holdings Ltd. in return for a 49% stake in Orokolo Bay in January.