Korab Resources Ltd. executed a nonbinding agreement to supply up to 20,000 tonnes of dead burned magnesia per year to Poland-based ZM Ropczyce SA in exchange for research and development support and cooperation to develop new products.
The agreement also allows for capital cooperation in respect of the funding required to develop and expand the production, but companies have not agreed on terms yet.
Korab said Jan. 17 that actual pricing of the dead burned magnesia will be set every six months, to be determined in a formal agreement.
The supply agreement is subject to Korab completing the permitting process and building the infrastructure needed to start commercial production at its Winchester magnesite deposit in Australia's Northern Territory.
The company began a review in March 2018 to possibly divest its operations and projects in Western Australia and Ukraine to focus on Winchester.