China’s Qingyuan Jinsheng ZR&TI Resources Takes 6000 Tons
PYX Resources Ltd (NSX: PYX) 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 PYX Resources Chairman and Chief Executive Officer, Oliver Hasler, said Qingyuan Jinsheng is one of the biggest zircon specialist in China.
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 Mr Hasler.
“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 world- class 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.