Gratomic Inc. (TSX-V:GRAT, OTCQX:CBULF) said it has entered into a commercial partnership and sales agreement with TM2 Verticals for graphite concentrate sourced from its Aukam vein graphite mine in Namibia.
As part of the arrangement, Gratomic will sell concentrate to the partnership for the join supply of value-added applications, initially focused on alkaline batteries.
It comes as Gratomic on June 12, 2023, supplied TM2 with 1 ton of graphite concentrate from its Aukam mine, which is being sent to South Africa for further upgrading.
It then will be sent on to midstream processors in the US and Europe to be converted into a purified flake graphite (PFG) equivalent to include in alkaline batteries.
An end user, who has chosen to stay anonymous, is funding the pilot processing of this material.
The end user is expected to enter into a direct purchase agreement with the commercial partnership once the supply chain and the PFG have been qualified, Gratomic said.
The contract established a target lead time of 120 days from May 24, 2023, is valid for five years, and sets annual quantities for delivery starting at 4,200 tonnes and reaching 7,260 tonnes per year.
"It is gratifying for the company and TM2 Verticals to be working in such an innovative partnership,” said Gratomic CEO Arno Brand. “Not only does it offer mutual benefits but opens the door for new applications of Aukam vein graphite."
TM2 CEO Petur Georgesson added: “Gratomic has been a key visionary in the graphite vertical and this partnership is a powerful step towards building market liquidity, transparent pricing and interconnectivity from source to consumer.”
Gratomic is a multinational company with projects in Namibia, Brazil, and Canada.
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on Twitter @emilyjjarvie