AMN - MOZAMBIQUE: Second offtake for Ancuabe graphite

Triton Minerals has signed a second binding offtake agreement for its flagship Ancuabe Graphite Project in Mozambique. This agreement is with Qingdao Chenyang Graphite, one of the largest graphite companies in the Qingdao area of Shandong province.

Chenyang is focused on graphite processing and trading, producing advanced graphite projects for customers in China, Japan and Korea.

The offtake agreement covers up to 16,000 tonnes a year of Ancuabe graphite concentrate for at least five years with a seller option for a further five years.

The minimum annual quantity under the agreement is 10,000 tonnes across a range of graphite product specifications.

The selling price will be determined by prevailing market prices in China, subject to a range, ensuring that Triton retains exposure to anticipated strong demand and projects prices for premium-quality graphite.

The offtake agreement is conditional upon Triton making an investment decision, obtaining all approvals and a mining concession, and completing construction of the mine and infrastructure. This is expected to be completed in the second half of 2019.

Triton has now signed binding offtake agreements for up to about 50% of the projected annual graphite concentrate production from the project. The company also continues to receive strong expressions of interest for offtake and is continuing to progress negotiations with other offtake parties.

Managing director Peter Canterbury said: “We are excited to announce the offtake agreement with Chenyang, which reflects strong demand for our premium quality Ancuabe graphite concentrate.

“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 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 in late 2019.”

www.tritonminerals.com