Uranex Signs Second MOU for Nachu Graphite Project

Uranex Ltd. (ASX:UNX) announced that it has signed a memorandum of understanding (MOU) for an offtake agreement with a joint venture between Sinosteel Liaoning Co. Ltd. and Dalian InterContinental New Materials Corp.; it is the second MOU Uranex has signed for graphite from its Nachu project.

As quoted in the press release:

Under the MOU, Sinsoteel Liaoning and Dalian InterContinental New Materials have expressed interest in purchasing 100,000 tonnes of graphite per annum for 10 years with an option to extend. The grading of the product is intended to be in the range of 92-95%TGC (Total Graphitic Carbon).

Sinosteel Liaoning is a subsidiary of major Central Enterprise Sinosteel Corporation, which has over 40,000 employees and is responsible for sourcing and processing raw materials, science and technology, equipment manufacturing, trade, logistics, engineering and research.

Dr. Frank Houllis, CEO of Uranex, commented:

The MOU for 100,000 tonnes per annum for a minimum of 10 years with Sinosteel Liaoning and Dalian InterContinental highlights Uranex as a significant emerging player in the world’s graphite market. Sinosteel Corporation is known worldwide as a leader in the resources industry with revenues of $US20 billion in 2013. It demonstrates the high value of the company’s Nachu Graphite Project as there are now MOUs with two major players in the graphite industry totaling 200,000 tonnes per annum, which is Uranex’s target annual production rate. We are unaware of any other graphite producer or explorer worldwide that has secured such large off-take MOUs for graphite destined for high-end products. The large flake graphite Uranex expects to mine should command superior prices.

Click here to read the full Uranex Ltd. (ASX:UNX) press release.