PERTH (miningweekly.com) – ASX-listed Pure Alumina has struck a non-binding term sheet with Canada’s Polar Sapphire to negotiate a possible merger.
Pure told shareholders on Monday that the companies had committed to work towards formal terms of the potential transaction before the end of January next year.
Pure produces high-purity alumina at its pilot plant in Toronto, Ontario, while Pure is progressing the development of its Yendon high-purity alumina project in Victoria, where it recently completed a prefeasibility study (PFS).
The PFS estimated that for a capital cost of A$271-million, Yendon could produce an average of 8 000 t/y of high-purity alumina.
A detailed feasibility study of the Yendon project has now been launched and Pure is planning to build a commercial demonstration plant to produce high-purity alumina from yendon kaolin.