Graphite junior Triton Minerals has secured a binding offtake agreement with one of China’s biggest graphite processors for production from its Ancuabe project in Mozambique.
Triton today announced to the ASX that it had progressed an informal arrangement with Qingdao Chenyang Graphite to a binding agreement, covering up to 16,000 tonnes per year of graphite concentrate from the Ancuabe mine for the next five years.
Based in Shandong Province, Qingdao Chenyang is one of China’s largest graphite processors, supplying customers in China, Japan and Korea.
Selling prices will be determined by prevailing market prices in China.
The deal follows Triton signing a similar deal with Qingdao Tianshengda Graphite Company midway through last month.
Triton said the agreement remained conditional upon a final investment decision and relevant approvals for the Ancuabe operation.
The miner is expecting to complete construction of the mine and infrastructure towards the end of 2019.
Triton has now secured binding agreements for up to 50 per cent of the operation’s production.
Managing director Peter Canterbury said the company continued to receive strong enquiry for the remaining production.
“We are excited to announce the offtake agreement with Chenyang, which reflects strong demand for our premium quality Ancuabe graphite concentrate,” Mr Canterbury said in a statement to the ASX.
“Securing binding agreements for up to 50 per cent of forecast annual production with experienced graphite producers in Chenyang and Tiangshengda demonstrates the success of Triton’s project marketing strategy and the demand for large flake, high purity graphite in the Chinese market.”
Triton also this week secured $4.1 million from investors to ramp up development at Ancuabe, via an entitlement offer priced at 8 cents per share.
The company has been in discussions with contractors Sinosteel and MCC for engineering works for the Ancuabe operation, with a preferred partner to be announced by the end of June.