Neometals (ASX:NMT) Enters Into Mou For Barrambie Offtake
Neometals (NMT) has entered into a memorandum of understanding (MOU) with Chinese titanium slag producer Jiuxing Titanium Materials
Neometals says its Barrambie Titanium-Vanadium Project in WA is the most advanced, undeveloped hard-rock titanium mineral resource in Australia
The MOU considers the potential for NMT to supply a mixed gravity concentrate or separate ilmenite and iron vanadium concentrate from Barrambie to Jiuxing
NMT is set to mine a bulk sample from Barrambie and deliver roughly 100 tonnes of mixed concentrate to Jiuxing for commercial-scale batch smelting in the December quarter
Meanwhile, Neometals is collecting due diligence regarding the provision of a complete mine-to-port solution for a mining and gravity operation at Barrambie for export to end-users
NMT and Jiuxing are hoping to execute a binding formal agreements in the first quarter of next year
Neometals shares are up 3.37 per cent, trading at 46 cents each
Neometals (NMT) has entered into a memorandum of understanding (MOU) with Chinese titanium slag producer Jiuxing Titanium Materials.
Jiuxing has been operating since 2008 and today owns approximately 12 per cent of the total Chinese chloride slag market.
In Australia, Neometals says its Barrambie Titanium–Vanadium Project in WA is the most advanced, undeveloped hard-rock titanium mineral resource in the country.
The MOU between the parties considers the potential for Neometals to supply a mixed gravity concentrate or separate ilmenite and iron vanadium concentrate from Barrambie to Jiuxing.
NMT is set to mine a bulk sample from Barrambie and deliver roughly 100 tonnes of mixed concentrate to Jiuxing for commercial-scale batch smelting in the December quarter this year.
Separately, Neometals will downstream-process mixed concentrates to produce separate ilmenite and iron-vanadium concentrates to advance potential customer relationships for the balance of planned production.
Further, following the completion of testing and technical due diligence by Jiuxing, the MOU could lead to further negotiations and, ultimately, a binding formal offtake agreement.
It suggests an agreement for the supply of 800,000 dry tonnes per annum (dtpa) of mixed gravity concentrate or 500,000 dtpa of ilmenite and 275,000 dtpa of iron-vanadium concentrate, on a take-or-pay basis for a five-year period from first production.
The arrangement complements Neometal’s existing MOU with the Institute of Multipurpose Utilisation of Mineral Resources Chinese Academy of Geological Sciences, which isa helping advance Barrambie towards development.
At the same time, Neometals is collecting due diligence regarding the provision of a complete mine-to-port solution for a mining and gravity operation at Barrambie for export to end-users.
The company and its partners successfully used the same model to develop the Mt Marion Lithium Project in 2015, which is now the world’s second largest spodumene-concentrate producer.
Neometals Managing Director Chris Reed said the new MOU is an exciting milestone for Barrambie.
“It validates our long-held belief in the shift by the Chinese Titanium pigment industry to the more environmentally friendly Chloride processes, requisite step-change in demand for chloride-grade titanium slag and the ability of Barrambie to help meet these supply needs,” Chris said.
“In parallel, we continue to advance our early contractor engagement process to ensure Barrambie can be expeditiously brought into production.”
NMT and Jiuxing are hoping to execute a binding formal agreements in the first quarter of next year.
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