Industrial minerals company Gulf Resources (ASX: GLF), has signed a key ten year off-take agreement with UK's leading vermiculite distributor Dupré Minerals Ltd, subsidiary of UK listed company, Goodwin Plc (LSE: GDWN).
The ten year exclusive sales and distribution contract with Dupré Minerals is for vermiculite ore concentrates produced from Gulf's East African Vermiculite Project in Uganda - covering the European Union, the Baltic States, Russia, Turkey and Israel.
Chairman Scott Reid said it was an exceptional deal for Gulf, locking in Dupré, which is "one of the leading vermiculite processing and manufacturing companies in the UK with over 40 years experience."
The company has a long established brand inspiring some of the world’s most advanced vermiculite product formulations.
"This deal with Dupré ensures that we now have in place off take and distribution agreements covering the entire expected output from EAV moving forward.”
Under the terms of the contract, Gulf has agreed to supply Dupré with all commercial sizes of vermiculite products. All other terms of the off take agreement are commercially confidential.
The minimum quantity supplied has been agreed at: year 1 – 8,000 tonnes ; year 2 – 10,000 tonnes; and year 3 – 15,000 tonnes.