Suvo Strategic Minerals Executes Sales Agreement Entering the High Value Pharmaceutical Market

Suvo Strategic Minerals Limited (ASX: SUV) has signed a sales agreement with Fagron, a global supplier of medications to pharmacies, hospitals, clinics, and directly to patients.

Suvo Strategic Minerals Limited is Australia’s only hydroid kaolin producer.

The Sales Agreement is valued at AUD$588,4621 (US$382,500) executed with Belgian Company, Fagron.

Suvo is focused on production at its 100% owned Pittong hydrous kaolin operation located 40km west of Ballarat in Victoria.

Suvo’s exploration focus is on near-term kaolin and high purity silica assets with 100% owned Gabbin (kaolin), Eneabba and Muchea (silica sands) projects located in Western Australia.

More detail

The hydrous kaolin to be supplied under this Agreement, totalling 300 metric tonnes over a three-year period, will be sold to Central de Drogas, SA de CV, a wholly owned subsidiary of Fagron.

It is the leading supplier of raw materials to compounding pharmacies and the pharmaceutical industry in Mexico.

Since returning Suvo’s Pittong plant back to name-plate processing capacity of 60,000 tonnes per annum, the Company has focused on strengthening its sales and marketing efforts in Asia to fully leverage this increase in capacity.

This newly appointed team in Asia has a combined experience of more than 60 years in the selling and marketing of kaolin, having previously worked for large mineral and chemical companies such as Imerys S.A and BASF.

Strong pipeline

Fagron is the fifth new customer in the 2024 CY.

Suvo has built a strong pipeline of potential customers across Asia Pacific with more than 20 end-users currently testing Suvo’s kaolin for suitability across various industries and applications.

Interim Chief Executive Officer Bojan Bogunovic said:

The pharmaceutical industry commands premium pricing for the Company’s premium products.

Other significant buyers of kaolin in Asia, some of which occupy end user markets where orders are measured in the thousands of tonnes for more industrial applications.

They continue to test the Pittong kaolin for quality and suitability and our primary goal remains to continue increasing sales following the recent plant upgrade at Pittong.

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