Amigo Resources PLC (LSE:AMGO, FRA:0VG), the Africa-focused gold and critical minerals company, has signed a memorandum of understanding (MOU) with the State Mining Corporation of Tanzania (STAMICO) to evaluate a graphite tailings recovery project.
The agreement grants Amigo exclusivity over third-party discussions for the duration of the memorandum, giving both parties time to negotiate a definitive long-form contract.
STAMICO, the Tanzanian state-owned entity mandated to participate in and advance commercial development across the country's mining sector, will coordinate engagement with relevant government institutions and local artisanal mining communities.
Amigo will lead and finance a technical due diligence programme covering sampling, metallurgical testing and independent laboratory analysis of graphite-bearing tailings, dumps and stockpiles.
The project aims to convert historical graphite-bearing material, currently regarded as having limited value, into a saleable mineral product.
Craig Ransley, Amigo's executive chair, said the MOU would allow the companies to determine whether graphite-bearing material currently unused or regarded as waste could be transformed into a valuable mineral product, while potentially creating additional income opportunities for eligible local miners and material owners.
Dr Venance Mwasse, STAMICO's managing director, described the agreement as a stepping stone towards a wider collaboration between the two organisations.
While the broader memorandum remains non-binding on the project's development, provisions covering exclusivity, confidentiality, costs and dispute resolution are legally binding.
No mineral resource, production target or economic outcome has yet been established; the Project's potential remains subject to satisfactory due diligence and the negotiation of definitive agreements.
