Emerging mineral processing technology company Zeotech (ASX:ZEO) has executed a non-binding memorandum of understanding with trading house Jiangsu Mineral Sources International Trading Co (MSI).
The MoU establishes the framework to negotiate the terms of a potential offtake or distribution agreement for Zeotech’s low-iron kaolin, pink cosmetic grade kaolin, and bauxitic clay direct shipping ore (DSO) products.
Under a potential distribution agreement, MSI could purchase various products from Zeotech in minimum quantities of product over a five-year term.
The MoU will expire on 31 December 2025 and may be terminated by either party by providing 30 days’ written notice.
Zeotech CEO James Marsh says the company is excited to be able to work with MSI towards a pathway to early cashflow from its ready-to-mine kaolin resources, as Zeotech continues to progress with the accelerated commercialisation of the AusPozz high reactivity metakaolin project.
“Toondoon kaolin has an exceptional natural purity, which has led to this DSO opportunity, which is made especially compelling by including the materially higher-value cosmetic-grade pink kaolin and the bauxitic clay, which was initially considered overburden but now can add value to the overall mining project,” the CEO adds.
Established in China, Jiangsu is a global independent bulk raw material trading company.
Zeotech is a future-focused company, leveraging wholly owned ‘high-grade’ kaolin resources to produce high-reactivity metakaolin (HRM) for the low-carbon concrete market and advanced materials for greenhouse gas (GHG) mitigation, such as zeolites for fugitive methane control.
The company is exhibiting at this week’s RIU Sydney Resources Round-up being held from 6-8 May at the Hyatt Regency Sydney. Mining.com.au is a media partner of the event.
Write to Adam Orlando at Mining.com.au
Images: Zeotech
