Signs Binding Zircon Offtake Agreement
Sydney, July 21, 2020 AEST (ABN Newswire) - PYX Resources Ltd (
NSX:PYX) is pleased to announce the Company has entered into a binding Offtake Agreement with leading global zircon trading group Qingyuan Jinsheng ZR&TI Resources Co. Ltd (Jinsheng) for 250 tons per month of premium quality zircon over a two-year period.
Commenting on execution of the Offtake Agreement with Qingyuan Jinsheng ZR&TI Resources Co. Ltd, PYX Resources Chairman and Chief Executive Officer, Oliver Hasler, said: "I am delighted that we have been able to finalise this Offtake Agreement with such a well- respected and one of the biggest zircon specialist in China such as Qingyuan Jinsheng ZR&TI Resources Co. Ltd."
PYX will provide the premium quality zircon from its world-class Mandiri asset in Indonesia. The Company recently announced the award of an initial contract for the acquisition of a Mine Field Unit to significantly expand production capacity at the Central Kalimantan tenement to 24,000 tons per year.
The negotiation of the Offtake Agreement was overseen by the Company's Chairman and Chief Executive Officer, Oliver Hasler who said: "I am very pleased for our Company and all stakeholders to be able to announce such positive progress. This Offtake Agreement also supports our decision to fast-track the expansion of our processing capacity and accelerate production growth at our worldclass Mandiri asset. This agreement enables the Company to significantly expand its position in this key market. China represents 47% of the global zircon demand."
Under the terms of the Offtake Agreement, PYX will deliver the product to Qingyuan/Huangpu Port, China, as requested by the buyer. Orders shall be placed by the buyer and accepted by the seller 60 days before each delivery.
Pricing under the Offtake Agreement shall be the prevailing US$ market price for zircon.
The execution of the Offtake Agreement represents a major agreement to be entered into by the Company, in addition to its existing global customers, since it completed its recent, highly successful IPO and listing on the National Stock Exchange (NSX) of Australia.
About Pyx Resources Limited
PYX Resources Limited (NSX:PYX) (LON:PYX) is a global producer of premium zircon listed on the National Stock Exchange of Australia and the London Stock Exchange. The Company's flagship asset is the Mandiri mineral sands deposit, located in the alluvium sediment rich region of Central Kalimantan, Indonesia. Boasting the world's 5th largest producing deposit of zircon, PYX is a large-scale, near-surface open pit operation in production since 2015 and with exploration to date validating the presence of additional Valuable Heavy Minerals such as rutile, ilmenite among others within its mineral sands.
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