Sheffield Resources Ltd. said Dec. 12 that it entered into a maiden binding off-take agreement for the future sale of zircon concentrate from its Thunderbird mineral sands project in Western Australia.
The company agreed to supply a minimum of 27,000 tonnes of zircon concentrate per annum to China-based Hainan Wensheng High-Tech Materials Co. Ltd., representing about 54% of the estimated stage-one production from the project.
The deal has been agreed for an initial five-year period, with annual contract extensions thereafter. The contract may increase its volume, subject to production increasing above 50,000 tonnes per annum.
Sheffield noted that initial earthworks and site access arrangements are currently underway at the project, with construction targeted to begin in the second quarter of 2018.
Previously, the company entered multiple binding off-take agreements for future premium zircon from Thunderbird, representing about 44% of stage-one production.
