R3D Resources (ASX:R3D) secures 100% copper sulphate off-take with Kanins International

Highlights

• R3D resources has implemented a binding heads of agreement with Kanins International Pty Ltd (Kanins), under which Kanins will buy 100% of the technical-grade copper sulphate produced by R3D.
• R3D and Kanins will independently discover the possibility of supplying feed-grade copper sulphate to the agricultural industry.
• Kanins will sell copper sulphate produced by R3D under its own ‘Kanins’ brand.

R3D Resources (ASX: R3D), an ASX-listed player in copper-gold exploration and development, has achieved a major milestone at its flagship Tartana project as it inked a binding heads of agreement with Kanins International Pty Ltd (Kanins) for the sole distribution and sale of copper sulphate from its Tartana plant.

Image and data source: Company update
Image description: © 2022 Kalkine Media®

Kanins International is a market leader in the supply of copper sulphate for the feed, industrial, fertiliser, and algaecide industries. The company holds significant expertise in the copper sulphate market.

As per the agreement, Kanins has committed to buying 100% of technical-grade copper sulphate produced by R3D. The deal is for an initial three-year period. Further, Kanins and R3D will work closely on the final stages of restarting the Tartana plant and  the future process and production optimisation. Both parties will independently discover the possibility of supplying feed-grade copper sulphate to the agricultural industry.

Below are the major focal points of the deal:

• The London Metals Exchange Copper price prevalent at that time will be used as a reference to determine the price of copper sulphate being sold to Kanins.
• Kanins will sell copper sulphate produced by R3D under its own ‘Kanins’ brand.
• According to the agreement, R3D will start its first production in December 2022, and over the following eight to 12 months, it will scale up from 200 metric tonnes per month to 500 metric tonnes per month.
• Whether R3D’s production profile falls short of the goal or surpasses it, Kanins will still be required to buy 100% of all the copper sulphate produced.

Image and data source: Company update
Image description: © 2022 Kalkine Media®

At the time of writing this article, R3D’s shares were trading at AU$0.085 apiece.