Under the term sheet, Suvo would negotiate first offtake arrangements with CMM Toye Industrial Mineral Consultants for a minimum of 10 000 t/y of high grade kaolin.

“The entry into the term sheet with CMM to progress one of the many expected offtake agreements from our White Cloud project at this early stage validates not only the quality of our kaolin, but the speed at which the company is systematically progressing this unique resource,” said Suvo executive director Aaron Banks.

A formal agreement is expected no later than the end of 2022.

Suvo previously announced a maiden Joint Ore Reserves Committee-compliant resource of 35.1-million tonnes for the White Cloud project.