Volt Resources Ltd (ASX:VRC) has executed a Letter of Intent (LOI) for the sale of 5,000 tonnes of fine natural flake graphite product annually for 10 years from the Bunyu Graphite Project in Tanzania.
The non-binding LOI was signed by 100% Volt subsidiary, Volt Graphite Tanzania Ltd, with listed battery anode material producer Graphex Group Limited subsidiary, Graphex Technologies (OTCQX:GRFXY, HKG:6128) LLC.
This LOI includes a provision for the parties to enter into a definitive offtake agreement within 60 days and another that could see offtake volume increased to 10,000 tonnes of Bunyu product for any 12-month period, by mutual agreement.
A volume producer
Graphex Technologies is a volume producer of spherical graphite for lithium-ion battery anodes and has recently filed for a proposed listing on the NYSE, America.
“The opportunity to align with Volt Resources fits perfectly into Graphex’s goal to augment and diversify the upstream supply of high-quality natural graphite to meet the growing demands of EV production in the US and worldwide,” Graphex Group president John DeMaio said.
“We look forward to exploring the possibility of expanding the relationship with Volt in the future to include higher volumes from Bunyu and potentially additional Volt assets.”
“A highly respected company”
Volt managing director Trevor Matthews said: “We are very pleased to secure this Letter of Intent for our Bunyu Product, and Volt is delighted to be partnering with such a highly respected company such as Graphex.
“The company looks forward to completing the definitive offtake agreement with Graphex for the Bunyu graphite product."
Volt is continuing negotiations with other parties for additional offtakes for the Stage 1 Bunyu Project.
“Strong demand in graphite market”
"With strong demand in the graphite market, we are continuing to progress discussions with additional parties in respect to further offtake opportunities,” Matthews said.
“Looking ahead, Volt remains firmly focused on obtaining the development funding for the Bunyu Project and moving towards construction and first production.
"We look forward to providing shareholders with further updates on progress in the near term.”
About Graphex Group
Graphex Group Limited is listed on the Hong Kong Stock Exchange and its ADRs are traded on the US OTCQX. It has its principal and administrative offices in Hong Kong and subsidiary office in Royal Oak, Michigan USA.
Graphex is focused on the development of technologies and products for the enhancement of renewable energy, particularly the enrichment of spherical graphite and graphene, key components for EV batteries and lithium-ion batteries for other use cases.
With a manufacturing facility in Heilongjiang Province, Graphex is strategically located near one of the world’s largest high-quality sources of natural flake graphite raw material.
Graphex Group is among the top suppliers of specialized spherical graphite to the EV and renewable energy industries and holds 23 patents in areas including products, production methods, machinery design and environmental protection.