Triton Minerals Ltd has signed a binding offtake agreement with Chinese graphite company for about 50% of forecast annual production, Chenyang, for its flagship Ancuabe project in Mozambique, the company announced.
The new agreement is dependent on Triton making an investment decision, obtaining all approvals and a mining concession and completing construction of the mine and infrastructure.
The minimum quantity under the offtake deal is 10,000 tonnes per annum of Ancuabe graphite concentrate for at least five years, with a seller option for a further five years.
Specifically, the selling price under the offtake deal will be determined by prevailing market prices in China, ensuring that Triton retains exposure to the anticipated strong demand for graphite.
Triton managing director, Peter Canterbury, commented, “Securing binding agreements for up to 50% of forecast annual production with experienced graphite producers in Chenyang and Tianshengda demonstrates the success of Triton’s product marketing strategy and the demand for large flake, high purity graphite in the Chinese market.
“In addition, this external support for the Ancuabe Graphite Project provides strong momentum for our EPC, financing and development objectives, which are on-track to enable an investment decision in 2018 and first production from Ancuabe in late 2019.”