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- Sovereign Metals (SVM) enters a memorandum of understanding (MoU) with titanium dioxide pigment producer The Chemours Company
- The non-binding and non-exclusive deal is for Sovereign to potentially supply 20,000 tonnes of natural rutile per annum from its Kasiya rutile project in Malawi
- Sovereign’s MD Dr Julian Stephens says signing this agreement with a global industry leader is a “true testament to the quality and strategic nature of our world-class Kasiya project”
- The two-year MoU is subject to the companies executing a definitive agreement
- SVM shares are up 1.28 per cent to trade at 39.5 cents at 12:52 pm AEDT.
Sovereign Metals (SVM) has entered into a non-binding memorandum of understanding (MoU) with The Chemours Company.
The MoU is for the potential supply of 20,000 tonnes of natural rutile per annum from Sovereign’s Kasiya rutile project in Malawi.
Chemours is reportedly one of the world’s largest producers of titanium dioxide pigments which it manufactures across four production facilities. In total, Chemours operates 29 manufacturing sites which serve around 3200 customers across 120 countries.
SVM Managing Director Dr Julian Stephens said he’s excited to work with Chemours as a future off-take partner for Sovereign’s “premium, low carbon-footprint rutile products.”
“To have signed an MoU for the supply of natural rutile to Chemours, a global leader in the titanium dioxide pigment industry, is a true testament to the quality and strategic nature of our world-class Kasiya project,” Dr Stephens said.
The 20,000 tonnes per annum relates to the Kasiya project’s stage one nameplate capacity and there’s an option to take additional product when the project reaches stage two nameplate capacity.
The MoU is non-exclusive and is subject to the parties negotiating and executing a definitive agreement. The MoU will expire two years from the execution date but may be extended if both companies agree and a definitive deal hasn’t been signed.
SVM shares were up 1.28 per cent to trade at 39.5 cents at 12:52 pm AEDT.
