Rikus Grobler | Oct 18, 2017 | 0
Next Graphite locks in off-taker
Next Graphite announced this week that its joint-venture partner locked in a disclosed producer for the supply of an initial 5,000 tonnes of graphite, subject to receiving a full mining license, an application for which will be submitted in early 2017.
The supply agreement expands upon the Letter of Intent signed in March of this year.
“This supply agreement gives our joint venture a market for the Aukam graphite, and the opportunity to be exposed to technology in the important graphene and graphite anode space,” said Cliff Bream, Chief Executive Officer of Next Graphite Incorporated. “We look forward to a long term relationship that is mutually beneficial to both companies,” he added.
Bream outlined that the agreement is for ten years and the Producer has the option to renew the agreement for an additional ten years. Following signing of the Letter of Intent, Next Graphite’s joint venture supplied the disclosed producer with several samples of Aukam vein graphite material for testing, including a 1.6 tonne bulk sample. All samples successfully passed preliminary testing, including suitability use in battery anodes.
Following successful additional third party testing, the Next Graphite will purchase commercially reasonable quantities of graphite each year that could eventually reach 10,000 tonnes per annum.
Meanwhile, according to Beam, an estimated order for graphite will be placed with Next Graphite at least four weeks prior to each quarter. Delivery of the graphite to the Producer shall be outlined in final orders that specifies quantity, material, sizing, packing, quality humidity and terms of payment.
Price of the graphite will be negotiated at the time of each order in the context of prevailing market conditions, Bream explained.