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Armadale signs MoU with Chinese company for graphite offtake

27th September 2019

By: Tasneem Bulbulia

Senior Contributing Editor Online

     

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Aim-listed Armadale Capital has signed a memorandum of understanding (MoU) for a proposed offtake agreement with CoolRU Information Technology, a China-based technology company, for high-quality graphite products produced at the company’s Mahenge Liandu project, in Tanzania.

The MoU is for the proposed offtake of 5 000 t/y of graphite concentrate produced at Mahenge.

It is for an initial term of five years and at a price to be agreed, based on the Chinese benchmark for the quality of the graphite produced.

The MoU, in addition to an agreement with the Matrass Group, brings the total offtake at Mahenge under MoU to 35 000 t/y, representing 71.4% of the 49 000 t/y average production target.

Further, discussions are advancing with a major organisation to secure a further offtake agreement in respect of the remaining production.

Work is also continuing in parallel to finalise a definitive feasibility study (DFS) and to convert MoUs into binding offtake agreements.

“Securing this MoU is another important step in the commercialisation of Mahenge Liandu,” commented Armadale director Nick Johansen.

“We now stand with over 70% of planned annual graphite production under offtake MoU and expect to secure further offtake agreements, which will cover all planned production.

“This news comes at a time when the company is accelerating its transition from explorer to emerging graphite producer, while multiple important workstreams related to completion of the project’s DFS are under way.”  

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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