Perpetual Resources Ltd (ASX:PEC) substantial holder Delphi Unternehmensberatung AG has increased its stake in the silica sand explorer and developer from 8.22% to 11.56%.
German-based Delphi, a prolific investor in Australian resources companies, increased its holding to 55.1 million shares from 39.1 million through purchases made this month at A$0.08.
MOU for Beharra silica sand offtake
The company recently signed an MOU with China-based C&D Group Co Ltd, which covers indicative interest to purchase 600,000 tonnes per annum of high-grade silica sand from the Beharra Project in Western Australia.
C&D Group is a wholly-owned division of Xiamen C&D Co and its core business is supply chain sourcing and operations, with activities in a broad array of business sectors, including:
- Metals and minerals;
- Pulp and paper;
- Food and Textiles;
- Agriculture; and
- Energy and chemicals.
Looking forward
Negotiations around final product attributes, product pricing and payment terms will progress in coming months, with more definitive pricing discussions subject to the outcomes of the recently announced white-sand testing program, for which a drilling program is being finalised.
Results of the white sand only bulk metallurgical testing program that will underpin these product and pricing discussions is expected to be finalised in July 2021.