Ann: Change in substantial holding , page-6

Comment on Proactive Investors re Tillbrok's notice.

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Gunson Resources substantial shareholder buys more shares following DuPont offtake deal
1:28 am
Gunson Resources (ASX: GUN) substantial shareholder John Tilbrook continues to buy up shares in the company, this time increasing his stake to 9.05%.

Tilbrook purchased around 3.3 million shares between 17 January and 5 March for a total consideration of $671,087, providing an average entry price of $0.20 per share.

Gunson is in an interesting position at its Coburn Zircon Project after having secured an offtake agreement with DuPont, the world’s largest pigment producer, for its proposed share of chloride ilmenite production from the Coburn Project over a five year period.

The offtake agreement will have a positive impact on the financial returns from Coburn.

Importantly, pricing under the agreement reflects the high chloride ilmenite feedstock grade of the product of 61.5% titanium dioxide.

Ilmenite is mainly mined for titanium dioxide production. Finely ground titanium dioxide is a bright white powder widely used as a base pigment in paint, paper and plastics.

Supply shortages and rising demand for zircon and titanium dioxide raw materials have improved the financial attractiveness of the Coburn project.

While Iluka Resources (ASX: ILU) recently reported a softening in zircon demand in China, it anticipates more favourable medium to longer term supply/demand of zircon and high grade titanium dioxide feedstocks for the pigment and titanium metal industries.

This leaves Gunson well positioned to take advantage of future increased demand as the company approaches production in 2013.