Benzinga | Dec 6, 2021 08:33AM EST

Hyperion Signs MoU With Chemours For The Potential Supply Of The Titanium Feedstocks Ilmenite And Rutile, As Well As The Industrial Mineral Staurolite

Hyperion Metals Limited (ASX: HYM) is pleased to announce that it has entered into a non-binding Memorandum of Understanding ("MoU") with The Chemours Company FC, LLC for the potential supply of the titanium feedstocks ilmenite and rutile, as well as the industrial mineral staurolite, from Hyperion's Titan Project in west Tennessee to Chemours.

The MoU contemplates the commencement of negotiations of a supply agreement between Hyperion and Chemours for an initial five-year term on an agreed market-based pricing methodology for the annual supply of up to 50,000 tonnes of ilmenite, 10,000 tonnes of rutile and 10,000 tonnes of staurolite.

Chemours is one of the world's largest producers of high-quality titanium dioxide products for coatings, plastics, and laminates. Chemours has a nameplate titanium dioxide capacity of 1,250,000 tonnes globally, including New Johnsonville, Tennessee, located 20 miles from Hyperion's Titan Project, and DeLisle, Mississippi, located 1,100 miles by back haul barge on the Mississippi River.

Hyperion holds a 100% interest in the Titan Project, covering ~11,000 acres of titanium, rare earth minerals and, zircon rich mineral sands properties in Tennessee, USA. The Titan Project is strategically located proximal to the town of Camden in the southeast of the USA, with low-cost road, rail and water logistics connecting it to world class manufacturing industries and customers.

Hyperion's maiden mineral resource estimate has confirmed that the Titan Project is one of the largest and most important critical mineral deposits in the U.S., with a high in-situ value underpinned by a product assemblage of high value zircon, titanium minerals and heavy and light rare earth elements. The shallow, high grade and unconsolidated nature of the sandy mineralization enables the potential for simple mining operations such as dozer push followed by an industry standard mineral processing flowsheet.

The Titan Project benefits from a material logistical advantage over critical minerals imported into the U.S., enabling the potential for significant reductions in carbon emissions in the mine to market supply chain through sales agreements with domestic customers, including potentially, Chemours.

Carbon emissions associated with seaborne transportation have been estimated, indicating the saving of between 2,300 -- 5,000 tonnes of CO2 per one way journey from major titanium export ports, which converts to approximately 50 -- 200 kg of CO2 per tonne of product. As a comparable benchmark, the average passenger vehicle in the USA emits around 4.5 tonnes of CO2 per year.

Full details of the announcement can be found here.