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Centrex gets offtake interest at Ardmore

18th May 2018

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX-listed junior Centrex Metals has signed a non-binding memorandum of understanding (MoU) for 300 000 t of phosphate rock offtake from its Ardmore project, in Queensland.

The MoU, with Gujarat State Fertilisers and Chemicals (GSFC), would see the two companies negotiate the terms of a ten-year offtake agreement, subject to the outcome of product testing.

“With such a large user as GSFC showing interest on a long-term basis in our proposed premium grade ultra-low cadmium product, signing the MoU with them is a key step in expediting production from Ardmore,” said Centrex MD and CEO Ben Hammond.

“The potential already to sell almost 40% of our proposed output to GSFC over the mine life, should give the market further confidence in what is a straightforward and simple mine development with a relatively low capital cost.”

A January scoping study for the Ardmore project estimated that the project would require a capital investment of between $55-million and $61-million, to produce 776 000 t of premium phosphate rock concentrate over a ten-year mine life.

A feasibility study on the project is due in mid-2018.

Edited by Creamer Media Reporter

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