Intention-listed Kazera World subsidiary Whale Head Minerals (WHM) has signed a gross sales and offtake settlement for its heavy mineral sands manufacturing with Fujax South Africa – a completely owned subsidiary of Fujax Group.
Kazera says it stays dedicated to advancing its high-grade heavy mineral sands challenge in South Africa.
Manufacturing has just lately commenced at a pilot plant for the WHM challenge, which the corporate intends to scale up because it pursues mining rights for the close by Perdevlei heavy mineral sands concession.
This concession, which has a land space about 34 instances bigger than WHM’s present Walviskop challenge, has comparable challenge dynamics and “important potential”.
The settlement with Fujax covers an preliminary 100 000 dry tonnes of heavy mineral sands, delivered in month-to-month batches of about 6 000 t, with first gross sales anticipated by March.
Beneath the phrases of the settlement, WHM will promote its heavy mineral sands to Fujax at a “manufacturing unit gate” value, at 80% of the anticipated value achieved by Fujax after deduction of prices.
“I’m delighted that now we have managed to safe this offtake, which validates the progress now we have made at WHM. Fujax is a well-established world commodities firm and its willingness to offer Kazera with a major prepayment and truthful pricing construction speaks volumes about its high quality as an offtake companion.
“Fujax’s contacts and monetary backing makes them good companions each within the quick time period and for the deliberate growth of our operations into the Perdevlei HMS challenge, which has a land space about 34 instances bigger than WHM’s present Walviskop challenge.
“Our focus is now on fine-tuning the WHM plant to fulfill Fujax’s necessities with a view to ramping up manufacturing early within the new yr,” says Kazera World CEO Dennis Edmonds.
He provides that whereas this 100 000 t offtake is substantial, it represents just the start.
He notes that Walviskop boasts a Joint Ore Reserve Committee-compliant indicated useful resource of about 1.5-million tonnes of heavy mineral sands, which is frequently being replenished by pure wave motion.
“Add to that the useful resource which is represented by Perdevlei, and the corporate turns into a critical participant available in the market. This settlement subsequently represents a springboard for additional development and future alternatives for the corporate,” he expresses.
Fujax can be chargeable for transportation and the separation of the heavy mineral sands into its element minerals, will carry all prices after the mine gate and can negotiate the ultimate sale of the merchandise.
WHM will obtain the steadiness of the gross sales value much less prices, together with a advertising charge, inside 5 days of Fujax finalising the sale of the merchandise.
As a part of the settlement, Fujax will prepay $600 000 to WHM in two equal instalments, scheduled for December and January.
The prepayments can be repaid in month-to-month instalments from March 2025 or set off in opposition to future month-to-month gross sales.
The prepayment quantities can be utilized to advancing the WHM challenge in readiness for manufacturing and provide to Fujax and is a powerful indication of Fujax’s help for the challenge and need to purchase Kazera’s heavy mineral sands product.
“We’re delighted to safe this partnership and offtake settlement with WHM. The standard of the HMS at Walviskop is great and, with Kazera planning to considerably increase the challenge, we really feel it’s a massively opportune time to be partnering with the Group,” says Fujax Group CEO Chris Dyason.
