Olympia sells zircon

01 February 2006 | 03:29 Code : 7781 Geoscience events
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Olympia has entered into a contract with an undisclosed European...
OLYMPIA Resources has tied up a $A48 million sales contract for half of the zircon expected to be produced from its Keysbrook mineral sands project south of Perth in Western Australia, and the company says a deal for the remaining products is just around the corner.
Olympia has entered into a contract with an undisclosed European zircon miller for 6000 tonnes of zircon per annum, which at current prices equates revenue of $A48 million over the eight year life of the project.The company has a sales contract in place with Du Pont for all of Keysbrook's titanium minerals and with the new zircon deal in place Olympia says 85% of the $A317 million worth of products has been sold.Olympia says negotiations for the sale of the remaining zircon are "well advanced".Keysbrook is set to get off the ground in early 2007 and has an estimated capital cost of $A31 million.The company says with the confirmed sales the project is likely to generate about $A96 million over its eight-year life.Shares in Olympia were up 2.5c (12.2%) to 23c in midday trade having touched a high of 30c in March last year

tags: QAZVIN


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