American Pacific Borate & Lithium Ltd (ASX:ABR) is set to welcome representatives of Sinomach Group to a site visit of its Fort Cady Project in California.
In 2018 the company entered into a non-binding strategic cooperation agreement with China National Chemical Fiber Corp., a wholly owned subsidiary of Sinomach.
Sinomach is a Chinese state-owned enterprise and is a Global Fortune 500 company.
It is an international, diversified, comprehensive equipment industrial group.
READ: American Pacific Borate & Lithium highlights strong financials of ‘low-risk’ US project
American Pacific’s CEO Michael Schlumpberger said: “The release of the definitive feasibility study at the end of 2018 has presented ABR with a strong platform to commence strategic negotations with large consumers of borates.
“As announced on 17 December 2018, we are targeting a staggering US$321 million EBITDA in our first full year of production which makes our Fort Cady Borate project a substantial mining prospect in a low risk, supportive jurisdiction.
“The company signed an agreement last year with the Chinese SOE Sinomach that has businesses covering a wide array of industries where boric acid is used.
“Bringing representatives to site in California and a reciprocal visit in China are important steps in exploring options for mine construction.”
December’s definitive feasibility study (DFS) delivered compelling financial metrics estimating an unlevered post tax net present value (NPV) of US$1.25 billion.
This includes a steady state production target of 410,000 tonnes per annum (tpa) of boric acid and 110,000tpa of sulphate of potash (SOP).
Pre-production capex including a 13% contingency is estimated at US$138 million.