(ASX: GUN) has secured a takeover agreement with DuPont, the world’s largest pigment producer, for a proposed share of ilmenite chloride production from the Coburn project over five years.
Meanwhile, talks with potential partners to take over mineral products with higher titanium dioxide and zircon have progressed well.
Gunson expects to enter into sales agreements once the detailed terms of the proposed joint venture arrangement with the main East Asian industrial group are finalized.
Last year, the company executed a non-binding technical sheet with the head, enabling the group to earn a large minority joint venture in Coburn, one of only a few significant advanced mineral sand projects in the world.
The Group is undoubtedly interested in the project due to the revised project returns, with an updated Coburn Definitive Feasibility Study model showing a capital cost of US $ 179 million and the latest product price forecasts, an internal return rate of 28.3% and a net present value (8%) of $ 223.7 million.
Coburn is strategically located, close to regional infrastructure that includes the main highway, natural gas pipeline and port, and the project is 250 miles north of Geraldton, an established mineral sand port with available capacity.
The project is ready for development with full permission and completed Feasibility Study.
Although Gunson initially expected to complete a detailed analysis and detailed documentation for the joint venture in February, he now predicts that the final binding documentation will not be completed until the end of April.
The company has completed a technical in-depth analysis and is making progress in an in-depth inspection that is nearing completion.
Strong cash support
At the end of the December quarter, Gunson had about 4.3 million US dollars in cash in the bank.
Last month, the company successfully raised $ 2.4 million by placing 12 million shares at $ 0.20 each for major and institutional shareholders.
With additional funds, the company is now sufficiently funded to promote Coburn.