Blencowe Resources PLC (LSE:BRES) has signed a non-binding offtake agreement with Perpetuus Advanced Materials for fine flake graphite from its Orom-Cross Graphite Project in Uganda.
The agreement covers 19,000 tonnes of +97% total graphite content fine flake concentrate over an initial five-year term.
Volumes may increase as Perpetuus expands its graphene manufacturing programme.
"This offtake Agreement is one of the most significant to date for Orom-Cross in that it provides substantial sales of fine flake concentrate into a leading western buyer,” said Blencowe executive chair Cameron Pearce.
“Western markets are currently paying considerably more per tonne for fine flake concentrate than Asian markets so the more Western contracts we can bring in, the better."
Pearce added: “Once again, the high quality of Orom-Cross graphite is clearly differentiating our product from our peers and I cannot stress how important this is in building a successful commercial model.”
Perpetuus has tested and validated the product through its proprietary processes.
The material will be used to produce plasma-treated, surface-engineered graphenes for commercial products including tyres, fertilisers, and battery storage systems.
The deal supports Blencowe’s strategy to target higher-value western markets.
Also, the deal may also allow the company to access UK Government funding schemes linked to domestic critical mineral supply chains.
“[It] opens the door for Blencowe to pursue niche UK Government funding support, which could provide yet another unique value-add proposition for our company," Pearce added.