Ark Mines signs MOU for HMS offtake and processing

Ark Mines (ASX:AHK) has entered a memorandum of understanding (MOU) with heavy mineral sands (HMS) producer Currumbin Minerals for the supply and delivery of mineral sands from the Sandy Mitchell project.

The MOU outlines the framework and timeline for the two companies to work together towards a definitive collaboration agreement that will facilitate the treatment of HMS ore transported from Sandy Mitchell to Currumbin’s treatment facility.

The terms of the MOU set out the key roles and responsibilities of both companies to establish the definitive agreement which is expected to result in the production of heavy minerals and rare earth critical minerals concentrate.

These roles and responsibilities include the mining, haulage and delivery of HMS ore from Sandy Mitchell to the Currumbin Minerals facility and the negotiation of price terms for the treatment of HMS ore.

In order to meet the increased demand, Currumbin Minerals has completed an expansion of its processing plant which now features the latest available technology. The plant now has mineral extraction of 100t of sand per hour.

Ark Mines executive director Ben Emery says the MOU marks the next steps in the company’s commercialisation strategy.

“Currumbin Minerals are best-in-class for the processing and treatment of mineral sands, and the MOU framework has been established jointly with a high degree of cooperation in a way that leverages the respective strengths of both parties,” he said.

“In that context, Ark Mines is well-placed to benefit from Currumbin’s expertise in end-to-end logistics, including the transport of raw materials and the potential export and sale of HM and REE concentrate.”

The MOU is expected to act as a catalyst for Ark Mines to move from exploration into development, offtake sales and revenue generation.