Australian Vanadium Ltd has passed a key milestone with the signing of a non-binding term sheet with Wingsing International Ltd, for the sale of iron titanium (FeTi) coproduct from its namesake project at Gabanintha in Western Australia’s Mid West.
This conditional agreement is for an initial 50,000 tonnes per annum of AVL’s FeTi coproduct with an option to increase volumes after the first year.
AVL plans to annually produce around 900,000 tonnes of the FeTi coproduct from the Australian Vanadium Project after the production of about 11,000 tonnes of vanadium pentoxide from its proposed mine and processing facility.
The non-binding term sheet extends the terms of the LOI and is the next step towards finalising a binding offtake agreement.
The term sheet outlines the product specifications, a term of three years from the commencement of production and an annual quantity of 50,000 tonnes for the first year with mutual agreement of the quantity from year two onwards.
It also includes provisions for trial materials as they become available, as well as a better definition of pricing formulas.