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- Mineral sands producer Strandline Resources (STA) has signed a binding long-term offtake agreement with Venator Materials
- The contract is the final offtake agreement for the company’s Coburn Project in Western Australia
- Venator Materials will use all of the rutile produced at Coburn to develop and manufacture titanium dioxide pigments
- The offtake agreement should generate approximately 17 to 20 per cent of Coburn’s forecast annual revenue over five years
- Strandline Resources is up 11.9 per cent and trading at 24 cents per share
Mineral sands producer Strandline Resources (STA) has signed a binding long-term offtake agreement with Venator Materials.
The contract is the final rutile offtake agreement for the company’s Coburn Mineral Sands Project, located in Western Australia. Rutile is a mineral consisting of titanium dioxide, mainly used in the manufacture of refractory ceramic, pigments and titanium metal.
The offtake agreement covers 100 per cent of the rutile to be produced at Coburn.
Venator Materials will use the Coburn rutile to develop and manufacture titanium dioxide pigments. The rutile from Strandline’s Coburn Project has already been confirmed as suitable for production of titanium dioxide pigments, which are commonly used in formulating paints, coatings, inks, ceramics, paper, plastic and other industrial applications.
The company’s rutile sales should generate approximately 17 to 20 per cent of Coburn’s forecast annual revenue over five years.
In April and July of 2020, Strandline announced similar offtake contracts for Coburn, covering the zircon that is also produced from the project. Combined, the company’s various offtake agreements have secured over 90 per cent of the project’s forecast revenue.
Strandline’s Managing Director, Luke Graham, commented that the agreement with an industry leader provides further endorsement of Coburn and the high quality of its mineral sands products.
“With over 90 per cent of the project’s revenue now underwritten by binding sales contracts with major customers and a significant portion of the development funding secured via the NAIF loan, Strandline is on track to become Australia’s next world-scale mineral sands producer,” he said.
Strandline Resources is up 11.9 per cent, trading at 24 cents per share at 12:06 pm AEDT.
