- Suvo Strategic Minerals (SUV) signs a legally-binding supply contract with C&D Logistics Group for the commercial delivery of two high quality Pittong hydrous kaolin products
- C&D plans to use the products in various commercial-scale trials and had evaluated technical data from Pittong, which includes a number of lab-scale samples
- Suvo believes this contract is an important next step and another step closer to a commercial offtake agreement with C&D
- The companies are in discussions regarding the sale price for a suite of potential full-scale commercial orders
- Shares in Suvo are up 3.39 per cent to end the day trading at 6.1 cents
Suvo Strategic Minerals (SUV) has signed a legally-binding supply contract with C&D Logistics Group for the commercial delivery of 20 tonnes of two water washed kaolin products.
Under the contract, Suvo will deliver the products with controlled colour and particle size distribution from its Pittong hydrous kaolin operation in Victoria.
C&D has planned to use the products in various commercial-scale trials and had evaluated technical data from Pittong, which includes a number of lab-scale samples.
Suvo believes this contract is an important next step and another step closer to a commercial offtake agreement with C&D.
Suvo Non-Executive Chairman Henk Ludik said C&D’s decision to move ahead with commercial trials following the evaluation of samples “speaks volumes” about the quality of koalin being produced by the company at Pittong.
“This is the logical next step towards a material supply agreement between the two companies with negotiations on this front already well advanced,” he said.
Depending on the results of the trial contract, the companies will continue negotiating a sales and purchase agreement, demonstrating their partnership with a view to develop long-term relationships with customers across a range of industries and locations.
The companies are in discussions on the sale price for a suite of potential full-scale commercial orders.
C&D Logistics is the minerals division of Xiamen C&D, a global Fortune 500 company with an annual revenue of around US$100 billion (A$140 billion)
Shares in Suvo were up 3.39 per cent to end the day trading at 6.1 cents.