Astron signs five-year Donald Project mineral supply deal
Key points
- Astron agreed to supply 100% of Donald Project heavy mineral concentrate to Xiamen Xiangyu Logistics over five years.
- The contract satisfies senior debt requirements and allows Astron to request a US$5 million prepayment.
- Astron secured processing rights for up to 30% of output to target expanding Asian zirconium markets.
Astron (ASX:ATR) signed a five-year binding agreement to deliver 250,000 tonnes of heavy mineral concentrate per year from the Donald Project to Xiamen Xiangyu.
The minimum take-or-pay volume of 160,000 tonnes per year covers approximately 70% of average early-stage production and satisfies debt package prerequisites.
"Xiamen Xiangyu Logistics Group is a valuable partner for the project's mineral sands products, with an extensive, established mineral sands sales network in China and into Asia," said Astron Managing Director Tiger Brown.
Astron stated that the agreement includes an option to receive a US$5 million prepayment within three months of operational startup.
Following the announcement, the Astron share price was unchanged at $0.58.
The company retained the right to buy back up to 30% of contracted material for internal downstream processing in Yingkou, China.
The agreement remains subject to commercial conditions, including the project joint venture executing a final investment decision by Dec. 31.
