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StratMin Global Resources plc (LSE:STGR) announced that it has entered into an offtake agreement that will see it sell its natural flake graphite to “one of the world’s largest independent processors and merchants of graphite.”
StratMin Global Resources plc (LSE:STGR) announced that it has entered into an offtake agreement that will see it sell its natural flake graphite to “one of the world’s largest independent processors and merchants of graphite.”
The buyer will also provide StratMin with technical assistance “by sharing graphite marketing information and its own processing knowledge.”
As quoted in the press release:
The Agreement was signed on 16 October 2014 between StratMin and the Buyer. The terms of the Agreement state that the Buyer will purchase all the material that StratMin can produce within a pre-determined product specification. The Buyer will further have a first option to purchase all other material produced by StratMin, wholly at its discretion. All product purchases will be made Free on Board Tamatave, Madagascar.
Within the initial five year agreement, StratMin and the Buyer will agree, in advance and on a rolling basis, pricing for the six months ahead. This mechanism will allow both parties to reset prices to reflect any changes in the open market. The parties have four months from the pricing reset date to agree the pricing for the succeeding six months and either party may terminate the Agreement within six months following the pricing reset date. The Agreement sets the first 12 months’ volumes, grades and fraction characteristics, which will be subject to an annual review thereafter.
Click here to read the full StratMin Global Resources plc (LSE:STGR) press release.