VHM Limited (ASX: VHM), has executed a binding offtake agreement with Shenghe Resources (Singapore) Pte. Ltd., a wholly owned subsidiary of global rare earths company, Shenghe Resources Holding Co., Ltd. in relation to its flagship Goschen Rare Earth and Mineral Sands Project (Phase 1) products.
The binding offtake is for 6,400 tonnes per annum of rare earth minerals concentrate and 100,000 tonnes zircon/titania heavy minerals concentrate products (each approximately 60% of forecast production per annum) from the Goschen Project, for an initial three-year term.
VHM Chief Executive Officer, Ron Douglas said: “Shenghe is a globally recognised rare earths and mineral sands processor. This agreement between VHM and Shenghe is a strong endorsement of the world-class rare earths and mineral sands resource, and the strategic value of the Goschen Project. A binding offtake arrangement for first production provides a favourable influence on the bankability for the Project, and further distinguishes the staged development approach of the Goschen Project as a viable, de-risked, low capital intensity project.”
To see the ASX announcement, please click here.
The HWL Ebsworth team was led by Nick Karagiannis, Partner with support from Braydon Cordingley, Solicitor.
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