PERTH (miningweekly.com) – Graphite developer Walkabout Resources has signed a nonbinding strategic sales and purchase agreement with European trading house Georg H Luh GhmB over the Lindi jumbo project, in Tanzania.
The memorandum of understanding calls for the companies to start commercial discussions on a confidential basis to negotiate the sale and purchase of between 10 000 t/y and 12 500 t/y of graphite, across four series of purity and flake size ranges, starting in 2018.
The parties will also work in other areas of product marketing and development, specifically in the area of high value graphite products.
A recently completed definitive feasibility study estimated that the Lindi project could deliver some 40 000 t/y of graphite concentrate over a mine life of 20 years, for a capital investment of $38.7-million.
Walkabout is hoping to start construction at Lindi in the first quarter of 2018, provided that initial funding can be secured before the end of this month.