PERTH (miningweekly.com) – Graphite developer Volt Resources has signed its second binding offtake agreement over the Bunyu graphite project, in Tanzania.
The ASX-listed company has inked a binding offtake agreement with Chinese graphite company Qingdao Tianshengda Graphite for 9 000 t/y of graphite over a period of five years.
Volt told shareholders on Thursday that the agreement will incorporate the size ranges of products to be produced at both the Stage 1 and planned Stage 2 development, and had the option to be extended for a further five years, by mutual agreement.
“We are very pleased to secure this significant binding sales agreement for our Bunyu product, and we are delighted to be partnering with such a highly-respected company such as Tianshengda,” said Volt CEO Trevor Matthews.
He said that the second binding offtake agreement was a strong validation of confidence in the Bunyu project, and that with strong demand in the market, particularly for large flake graphite, Volt was continuing to progress discussions with additional parties for further offtake opportunities.
Volt in March last year signed its first binding offtake agreement with US-based Nano Graphene for a minimum of 5 000 t of graphite over a five-year period.
A recent feasibility into the Stage 1 project, based on a mining and processing plant with a throughput rate of 400 000 t/y of ore, to produce an average 23 700 t/y of graphite products, is expected to require a capital investment of $31.8-million.