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Magnis Resources Ltd. (ASX:MNS) announced that it has signed a binding offtake agreement with China National Materials Import and Export Corp. (SINOMA), a subsidiary of China National Materials Group Corp. (HKEX:1893), a “major state owned enterprise.”
Magnis Resources Ltd. (ASX:MNS) announced that it has signed a binding offtake agreement with China National Materials Import and Export Corp. (SINOMA), a subsidiary of China National Materials Group Corp. (HKEX:1893), a “major state owned enterprise.”
Highlights of the agreement are as follows:
- 80,000 tonnes per annum binding Offtake Agreement signed with SINOMA. Biggest binding graphite offtake agreement in recent history
- Term is for 5 years with option to extend
- SINOMA is a major supplier of graphite to the Japan battery market as well as the burgeoning China battery market
- Graphite purchase price linked to market prices
- Current basket price over US$2,000 per tonne due to majority of Magnis product in Super Jumbo (+500 microns), Jumbo (+300 microns) and Large (+180 microns) categories
- At current market price yearly revenues equate to over US$160m or over US$800m over 5 years
Frank Poullas, chairman of Magnis, commented:
Today’s announcement is historic for both Magnis Resources and for the graphite industry. The signing of a binding Offtake Agreement and the recently announced JORC Resource, with majority as measured and indicated, are pivotal elements in Magnis Resources’ strategy to fast track the Nachu Graphite Project to production.
Click here to read the full Magnis Resources Ltd. (ASX:MNS) press release.