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- Australian Vanadium (AVL) signs a non-binding term sheet with Tianzhu Steel’s commercial arm, Wingsing International
- The term sheet builds on the letter of intent signed with Wingsing earlier this year and is the next step towards finalising a binding offtake agreement
- Australian Vanadium will supply an initial 50,000 tonnes of iron titanium co-product per annum from its namesake project in WA
- AVL Managing Director Vincent Algar says he’s delighted with this agreement as the company progresses construction and financing options for the project
- Company shares are steady to trade at 4.5 cents at 1:19 pm AEST
Australian Vanadium (AVL) has signed a non-binding term sheet with Wingsing International, the commercial arm of Tianzhu Steel.
Under the term sheet, Australian Vanadium will supply an initial 50,000 tonnes per annum (tpa) of iron titanium co-product from its namesake project in Western Australia.
The co-product will be shipped from the company’s port facilities in Geraldton and there is potential to increase volumes after the first year.
Australian Vanadium said this agreement extends the terms of the letter of intent signed with Wingsing in March this year and is the next step towards finalising a binding offtake agreement.
The company also said this represents a “key milestone” in establishing an iron titanium customer base in China and Southeast Asia.
“We are delighted to make this progression with Tianzhu Steel to lock in supply of this unique product which is able to cost effectively improve mill operational efficiency,” AVL Managing Director Vincent Algar said.
“We will continue to progress the agreement through to binding offtake as we work to secure finance for the Australian vanadium project and commence construction.”
AVL plans to produce around 900,000 tonnes of iron titanium co-product per annum from its vanadium project, after producing approximately 11,000 tonnes of vanadium pentoxide per annum from its proposed mine and processing facility in WA.
Company shares were steady to trade at 4.5 cents at 1:19 pm AEST.
