PERTH (miningweekly.com) – ASX-listed Mayur Resources has struck a binding offtake agreement over its Orokolo Bay industrial sands project, in Papua New Guinea.
The agreement covers the initial requirements for a bulk sample of vanadium-titano-magnetite (VTM), subject to statutory approvals, from the Orokolo Bay Stage 1 operation, which will be used for commercial-scale acceptance testing.
The agreement also includes a commercial framework for the offtake of 200 000 t/y of VTM, which will apply after the Stage 1 pilot plant testing and once the project is expanded to the full Stage 2 operation.
“The signing of this first binding offtake agreement for up to 40% of the VTM product from the Orokolo Bay project once in full production, provides further impetus for the development of the project and follows in quick succession to our recently announced deal with China Titanium Resources Holdings, our joint venture partner for the project,” said Mayur MD Paul Mulder.
“It is also encouraging that the VTM product may also give the project exposure to the recent surge in iron-ore prices,” he added.
Mulder said that Mayur would continue with its efforts to convert the other VTM letters of intent that are already in place, along with letters of intent for other products, into similar binding commercial arrangements.
The Orokolo Bay industrial sands project has a Joint Ore Reserves Commission-compliant resource of 86-million tonnes of industrial construction sand, 173-million tonnes of magnetite at 9.2% iron, and 107 000 t of zircon.