Ann: Trading Halt, page-173

Boom!!! Here we go:

Significant Binding Offtake Agreement Signed for Great White Kaolin ProjectSummary•

Substantial binding offtake agreement signed with large Chinese commodity trading house Jiangsu Mineral Sources International Trading Co. Ltd (MSI) for 70,000tpa +/- 10% of refined ultra-bright high-purity kaolin material for the coatings and polymers market for an initial term of 5 years.• The contract price for the offtake agreement is superior to the selling price used in the Pre-Feasibility Study of A$700/tonne for ceramic grade material and is fixed for the first 3 years of the contract.• Payment assurance to the agreement is provided by Jiangsu Holly International Technical Engineering Co. Ltd (Holly), which has agreed to act as financier to MSI.• Discussions are continuing with MSI for the supply of premium ceramic grade Great White CRM product under a separate agreement in addition to ongoing discussions that are continuing with other potential global customers for additional offtake.• The agreement represents a substantial proportion of the planned 116,000tpa of refined halloysite-kaolin product to be manufactured from the initial 250,000tpa feed rate capacity plant to be built on site on commencement of operations.• A review of the Definitive Feasibility Study (DFS) incorporating the manufacture of a coatings and polymers product in addition to premium ceramic grade material is currently in progress.• Supply of additional quantities of refined halloysite-kaolin to MSI are to be negotiated once production doubles to 500,000tpa feed rate full capacity, which is estimated to be from Year 3.