LONDON, UK: Sovereign Metals Limited (ASX:SVM) has entered into a non-binding Memorandum of Understanding (MOU) with The Chemours Company for the potential supply of 20,000 tonnes of natural rutile per annum from the Company’s Kasiya Rutile Project.

Upon signing the MOU, Sovereign’s Managing Director Dr Julian Stephens commented: “To have signed an MOU for the supply of natural rutile to Chemours, a global leader in the titanium dioxide pigment industry, is a true testament to the quality and strategic nature of our world-class Kasiya Project in Malawi. We are excited to be working with Chemours as a future off-take partner for our premium, low carbon-footprint rutile products.”

The MOU covers the potential supply of 20,000 tonnes per annum of natural rutile at Stage 1 nameplate capacity and an option to take additional product (tonnage to be agreed) when Kasiya reaches Stage 2 nameplate capacity (refer to announcement dated 16 June 2022 entitled Kasiya Expanded Scoping Study Results).

Further, volumes may be varied up or down by mutual agreement and pricing will reference market prices of the day (both to be included in the definitive agreement).

The MOU is non-exclusive and non-binding and remains subject to negotiation and execution of the definitive agreement. The MOU will expire two years from the execution date but can be extended by agreement by both parties should a definitive agreement not have been reached by that time.

Chemours is a leading provider of performance chemicals that are key inputs in end-products and processes across a variety of industries. Chemours operates 29 manufacturing sites serving approximately 3,200 customers in approximately 120 countries.

Its Titanium Technologies segment is one of the world’s largest producers of high-quality titanium dioxide (TiO2) pigment and aspires to be the most sustainable TiO2 enterprise in the world. Using its proprietary chloride technology-pioneered in 1931 and improving ever since-Chemours provides innovative TiO2 solutions for coatings, plastics, and laminates.

It operates four TiO2 pigment production facilities: two in the United States, one in Mexico, and one in Taiwan totalling TiO2 pigment nameplate capacity of 1.25 million tonnes per year. In the year ended 31 December 2021, Chemours’ Titanium Technologies segment reported net sales of US$3.4 Billion.