10th Jun 2024 12:17
(Alliance News) - Blencowe Resources PLC on Monday said it signed the first offtake agreement relating to graphite from its Orom-Cross project in Uganda.
The London-based mineral exploration and development company said the non-binding memorandum of understanding was signed with Jilin New Technology Graphite Co, a leading processor of battery anode materials in China.
In accordance with the agreement, Blencowe will supply 15,000 tonnes per annum of blended large flake graphite for an initial 3 year period.
This equates to 66% of initial large flake production at Orom-Cross and, with larger flakes worth more than smaller ones, the deal is expected to cover approximately 50% of total revenue from the project.
Final pricing terms will be agreed upon following the completion of the definitive feasibility study.
Furthermore, Blencowe is currently in advanced negotiations with a number of Chinese and South Korean firms regarding the sale of its remaining large flake products and smaller flakes utilised in batteries.
"This MOU is a key milestone for the company and it is just the beginning. We anticipate announcing several more agreements over the next few months," Chair Cameron Pearce commented.
Jangada Mines PLC, which holds a 10% interest in Blencowe, noted today's announcement saying the agreement "underscores the strategic significance of Orom-Cross and reaffirms our confidence in its exceptional potential".
Blencowe shares were up 2.7% to 5.70 pence each in London on Monday afternoon. Jangada shares were up 15% to 1.50 pence each.
By Elijah Dale, Alliance News reporter
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