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Black Rock Mining signs first major offtake agreement in Tanzania

Mining News - Published on Wed, 24 Oct 2018

Image Source: Small Caps
Tanzanian graphite developer Black Rock Mining Limited announced the signing of its first offtake agreement for natural flake graphite from its Mahenge Graphite Mine in Tanzania. The Offtake Agreement is with Heilongjiang Bohao Graphite, one of the largest vertically integrated graphite producers in China. The Offtake Agreement with Heilongjiang Bohao is the largest offtake agreement signed by any developer by an order of magnitude and covers approximately 37.5% of proposed steady state annual production of 240,000 tonnes per annum. The Offtake Agreement has been signed via Black Rock's 100% owned Tanzanian subsidiary, Mahenge Resources Limited.

Mr John de Vries, Black Rock Mining CEO, said that the Company was extremely pleased to have finalised a foundation sales agreement for its graphite concentrate with one of the world's leading consumers and traders of natural graphite flake.

Mr Vries said that "The signing of this offtake agreement vindicates our pilot plant strategy that saw us producing around eight tonnes of graphite concentrate from a 90 tonne run, which enabled us to deliver meaningful volumes of product to 24 potential customers around the world. 90,000 tonnes per annum is the largest offtake agreement signed by any developer by an order of magnitude and substantially underwrites our steady state operations of 240,000 tonnes per annum. Heilongjiang Bohao Graphite Company Limited is a great offtake partner being one of China's largest fully integrated graphite producers. They have an operation targeting the consumption of up to 100,000 tonnes of flake graphite annually. The partnership between Black Rock and Heilongjiang Bohao will be key for both parties in the coming years."


HIGHLIGHTS
1. Black Rock Mining signs Offtake Agreement with Heilongjiang Bohao Graphite Company Limited ("Heilongjiang Bohao") for up to three years to supply 30,000 tonnes in Year 1; 50,000 tonnes in Year 2; and up to 90,000 tonnes in Year 3 of blended graphite concentrate ("Offtake Agreement")

2. 90,000 tonnes per annum is the largest Offtake Agreement signed by any graphite developer by an order of magnitude and underwrites the Company's proposed three phase construction strategy accounting for approximately 37.5% of proposed steady state annual production of 240,000 tonnes per annum

3. Heilongjiang Bohao are one of China's largest suppliers of graphite for a variety of industrial purposes including batteries and currently mine graphite in Heilongjiang Province

4. Pricing to be agreed under the terms of a formal agreement to be entered into within 12 months of execution of the Offtake Agreement and will be set quarterly with reference to the prevailing market price for flake size and concentrate grade

5. Initial Offtake Agreement demonstrates benefit of completing substantial pilot plant run of 90 tonnes of ore enabling the Company to place significant volumes of concentrate in the hands of 24 potential customers

6. Black Rock continues to have positive discussions with additional potential customers with respect to signing binding supply contracts for the balance of its annual production

Source :

Posted By : Rabi Wangkhem on Wed, 24 Oct 2018
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