PERTH (miningweekly.com) – ASX-listed IMX Resources has inked a memorandum of understanding (MoU) with commodities trader Ningbo Foreign Trade for a possible offtake agreement over the Chilalo graphite project, in Tanzania.
IMX said on Wednesday that the MoU would allow the two companies to execute a binding offtake agreement for at least 25 000 t/y, over a five-year period, once the feasibility work on the Chilalo project had been completed.
While the China-based Ningbo has expressed desire to purchase a larger quantity of graphite, IMX told shareholders that the company had indicated its preference for offtake agreements to be diversified across multiple parties.
“This MoU reflects the underlying strengths of the Chilalo project and builds on the strong early-stage interest expressed by a number of parties,” said IMX CEO Phil Hoskins.
The Chilalo project has a mineral resource of 7.4-million tonnes, grading 20.7% graphitic carbon, for 792 000 t of contained graphite.
IMX had begun producing bulk samples for customers that would be testing the Chilalo graphite for use in various products.