Platina Resources Limited (ASX:PGM) has extended its Memorandum of Understanding (MOU) with Traxys Europe SA for six months to continue assessing scandium product, market development and potential funding for the Platina Scandium Project in NSW.
Traxys is proposing to assist in developing and executing a strategic product, market and marketing development plan.
In return, they will source funding for receiving long-term exclusive marketing and distribution rights to the scandium products produced from the Platina project.
Expertise "extremely beneficial"
PGM's managing director Corey Nolan said that Traxys’ experience and expertise in the speciality metals markets was extremely beneficial.
He said: “Whilst the use of scandium in the aluminium alloy industry is at an early stage, it has been demonstrated that scandium produces stronger, more heat tolerant and weldable aluminium products.
“The market opportunity is to incorporate these products into transportation applications for electric vehicles and improving fuel efficiency and we are working with Traxys leveraging their global resources network to make the most of this opportunity.
“The extension of the MOU allows the parties more me to working on building relationships whilst the markets have been disrupted by the impacts of the Coronavirus pandemic.”
Large scandium resource
The project in central NSW, previously known as Owendale, is one of the world's largest and highest-grade scandium deposits with the potential to become Australia’s first scandium producer with cobalt, platinum, and nickel credits.
Traxys has a long track record of success in serving and growing global markets for strategic materials such as scandium, with operations in North and South America, Europe, Africa, the Far East and greater China and India.