PERTH (miningweekly.com) – Graphite developer Walkabout Resources has signed its first binding offtake term sheet with expandable graphite producer Inner Mongolia Qianxin Graphite (IMQG) over its Lindi Jumbo project, in Tanzania.
Under the terms of the agreement, Walkabout would deliver between 10 000 t/y and 20 000 t/y of flake graphite to IMQG over a three-year period, following the start of production from Lindi Jumbo.
“Signing the first binding offtake termsheet is a significant milestone for Walkabout. It’s clear that end-users and upgrade facilities, who have recognised our premium product, can now see a more definite timeline to production,” said Walkabout executive chairperson Trevor Benson.
“This has prompted them to take action to secure supply from what is Africa’s stand-out large-flake graphite deposit.”
The agreement secures the sale of up to 50% of the planned production over the first three years of the Lindi Jumbo project, with Benson saying that the agreement reduced financing risks for the project.
The 40 000 t/y project is expected to have a mine life of some 24 years, and will cost $27.8-million to develop.