IMX Signs Graphite Supply MOU with China-Base Ningbo

IMX Resources Ltd. (ASX:IXR,TSX:IXR) announced that it’s signed a memorandum of understanding (MOU) with China-Base Ningbo Foreign Trade Co. Ltd. under which it will supply the company with 25,000 tonnes of graphite concentrate a year for five years.

Highlights of the agreement include:

• China-Base Ningbo is one of China’s Top 100 Trading Enterprises (2014 turnover approx. US$4.5 billion) and has a successful pre-existing trading relationship with IMX
• China-Base Ningbo will deal exclusively with IMX in respect to sourcing graphite and is interested in providing project finance
• Pricing mechanism to be based on market prices and include scope for setting floor prices and fixed prices
• Ongoing discussions with other parties in Asia, Europe and North America

Terms of the MOU are as follows:

The MOU envisages execution of a binding offtake agreement upon the completion of appropriate levels of feasibility study on the Chilalo Graphite Project. It contemplates the supply of at least 25,000 tonnes of Chilalo graphite concentrate per year for five years. The parties are open to mutual options of extension, subject to a successful supply relationship being built during the initial contract term.

While China-Base Ningbo has expressed a desire to purchase a larger quantity of graphite, IMX has indicated a preference for its offtake agreements to be diversified across multiple parties.

The MOU stipulates that the price to be paid by China-Base Ningbo will be linked to market prices for graphite and also requires that a mechanism be put in place for setting a floor price or fixed price. ChinaBase Ningbo has also agreed to deal exclusively with IMX in respect of purchasing graphite for the term of the MOU.

Click here to read the full IMX Resources Ltd. (ASX:IXR,TSX:IXR) press release.