Uranex Ltd. (ASX:UNX), which is focused on the Tanzania-based Nachu graphite project, announced that it has signed a memorandum of understanding (MOU) for an offtake agreement with China National Materials Industry Import and Export Corp. (SINOMA), a subsidiary of a major state-owned enterprise.
As quoted in the press release:
Under the MOU, SINOMA has expressed an interest in purchasing 100,000 tonnes of graphite per annum for a period of 5 years with an option to extend for a further 5 years. The grading of the product is intended to be in the range of 90% to 95%TGC.
Peter Sarantzouklis, chairman of Uranex, commented:
Today’s announcement is significant. The MOU for 100,000 tonnes per annum for up to 10 years with China National Materials Group Corporation (SINOMA) highlights Uranex as a major emerging player in the world’s graphite market. To have SINOMA on board, one of the largest producers of high technology materials in the world with assets of $18 Billion (US) and revenues of $12 Billion (US), clearly demonstrates the significant value in our Nachu Graphite Project. With a significant estimated target resource established, excellent metallurgical results to date, and today’s announcement of an MOU for off-take with a major partner, Nachu continues to confirm that it is a world class project in every sense.