Double Crown Resources signs MPA with China for high grade barite
- Business & Finance
Double Crown Resources, Inc. has signed a new, 8 year Master Purchase Agreement with a strategic mineral mining company in China for monthly shipments of high grade barite.
This agreement will provide Double Crown with 30,000 metric tons of high grade barite per month (market value approximately $5.5 million per monthly shipment). The MPA was negotiated and signed to procure product for a long-term oilfield service contract with a major petroleum drilling company now in late stage development and near finalization. The barite product from this Chinese mining source has been fully tested and verified to meet or exceed petroleum grade API standards. Processed barite is a key mineral commodity with growing market demand for use in offshore petroleum drilling operations.
Double Crown’s Chief Operating Officer Antonio B. Castillo traveled to China for the purpose of negotiating and signing the 8 year MPA for this valuable source of high grade barite. Castillo is still traveling in Asia evaluating and working on additional new business developments.
Initially, the China-sourced high grade barite will be processed before importation to the United States. Arrangements are currently being made to receive shipments at Corpus Christi and other commercial ports in Texas. After Double Crown’s own processing plant & bulk terminal in New Orleans, Louisiana becomes fully operational, the company intends to process future shipments of raw ore and other commodities there. Multiple design advancements for the upgrade of the New Orleans plant have been planned for best possible use in the company’s unique means of strategic commodity product distribution. Some of the latest technologies have been incorporated into the upgrade planning to maximize the resources and performance of this plant to best serve Double Crown customers. At capacity, the plant will be able to load and dispatch one full intermodal unit train per day. The company has signed the necessary contracts with the engineering firms, as well as the contracts with the project management consultants for all planned upgrades. Double Crown is now prepared to secure financing for this major corporate development project.
CEO & Chairman of the Board Jerold S. Drew said: “Double Crown Resources is moving forward swiftly now to establish a global range of top quality, long term sources for the vital commodities our customers need in both on-shore and off-shore oilfield drilling operations. The demand for important minerals like barite, as well as related commodities, has never been stronger, especially with the great expansion of shale oilfield drilling projects we see today. Industry projections anticipate this demand will continue to grow for decades to come. Our management has worked very hard to secure the best possible sources of top quality commodity products to support the drilling industry and to develop the most effective, cost-efficient and environmentally friendly methods of delivery. We intend to do our utmost to accomplish that mission for the benefit of all our customers, associates and shareholders.”