Blencowe Resources PLC (LSE:BRES) has signed its first memorandum of understanding (MOU) for natural large flake concentrate offtake from the Orom-Cross graphite project in Uganda.
Jilin New Technology Graphite has agreed to take 15,000t/annum of blended large flake graphite or equal to around 66% of initial large flake production for up to three years from
Based in northeastern China, Jilln is a processor of battery anode materials and expandable graphite.
Prices will be agreed for the non-binding agreement when Blencowe completes a definitive feasibility study for the deposit.
Large flake concentrate generates substantially higher prices than small flakes, Blencowe said, with the MOU expected to cover 50% of the total revenue from Orom-Cross.
Blencowe's senior management recently visited China where Jilin is carrying out a 600t bulk sample processing program to purify small flake concentrate produced at Orom-Cross and qualify it for additional offtake deals.
Cameron Pearce, Blencowe’s executive chairman commented: "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. Jilin is a leading graphite company globally and this is a strong endorsement of the graphite product from Orom-Cross.
“The 600-tonne bulk testing program will allow us to provide concentrate to qualify our small flake products through a rigorous qualification process so that we can progress offtake discussions with other tier-one consumers of graphite.”