Suvo Strategic Minerals (ASX:SUV) has signed a legally binding supply contract for the delivery of two high quality Pittong hydrous kaolin products to be used in commercial-scale trials by C&D Logistics Group Co Ltd.
C&D has agreed to accept delivery under a commercial-scale trial delivery contract, 20 tonnes of two high quality water washed kaolin products, from Suvo’s 100% owned Pittong hydrous kaolin operation.
C&D is the minerals division of Xiamen C&D – a Global Fortune 500 company with annual revenue circa US$100 billion and almost 30,000 employees. C&D focuses on resources and minerals, providing a one-stop supply chain service to both upstream and downstream users of industrial materials.
Under a cooperation agreement dated 25 May 2022 between C&D and Suvo, the company has subsequently provided Technical Data Sheets (TDS) and product samples of hydrous clay from its Pittong operations to C&D.
Having assessed the TDS and a number of lab-scale samples, C&D have chosen two Pittong hydrous kaolin products to commence commercial trials.
Pending the results of this commercial-scale trial contract in relation to product sourced from Pittong, Suvo and C&D will continue to negotiate a Sales and Purchase Agreement in good faith.
“C&D’s decision to move ahead with commercial trials following the evaluation of samples speaks volumes about the quality of kaolin being produced from our Pittong operations in Victoria,” Suvo Non-Executive Chairman Henk Ludik said.
“This is the logical next step towards a material supply agreement between the two companies with negotiations on this front already well advanced.”
For further information please visit: https://suvo.com.au/
