Heavy Minerals executes MoU with ABSS 

Heavy Minerals (ASX:HVY) has signed a non-binding memorandum of understanding (MoU) for the future sale of a minimum of 15,000 tonne per annum of garnet from its Port Gregory Project in Western Australia. 

The $4.66 million market capitalisation company says the offtake is for an initial 3-year term with Abrasive Blasting Service and Supplies (ABSS) and will account for about 10% of the company’s future garnet production.

Garnet will be sold into the Australia and New Zealand sand blasting and water jet cutting markets. 

Heavy Minerals is currently engaging with garnet distributors in North America and internationally seeking additional distribution partners. 

Binding terms will be agreed within the coming months that will include pricing and logistics. 

Heavy Minerals Non-Executive Director and ABSS employee Aaron Williams led the negotiation of the MoU on behalf of ABSS, however, has declared this conflict of interest and recused himself from the company’s deliberations about the MoU. 

Chairman Adam Schofield says: “We are extremely pleased with the signing of this MoU with ABSS. 

Although it is non-binding it demonstrates ABSS’s desire to lock in future supply of high-quality almandine garnet in an industry sector they know and understand well, and within which they are well placed to manage the domestic distribution of Heavy’s garnet products. 

This is also a significant step on the way to the development of the company’s Port Gregory Project.”

Yesterday (6 March 2024), Heavy Minerals extended the closing date of its $750,000 share purchase plan (SPP) to 5pm AWST 15 March 2024, as reported by Mining.com.au

Funds from the SPP are expected to be applied towards completing a Prefeasibility Study (PFS) for Port Gregory, additional work at Red Hill and other exploration targets, costs of the SPP, and general working capital. 

Heavy Minerals is an industrial mineral explorer with a portfolio of projects considered prospective for industrial minerals including but not limited to garnet, zircon, rutile, and ilmenite. 

ABSS is an Australian manufacturer of quality shot peening equipment, shot blast machines, turbine wheel blasting machines, abrasive sandblasting cabinets, and sandblast pots and sand. 

Write to Adam Drought at Mining.com.au

Images: Heavy Minerals
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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.