ASX-listed Volt Resources has inked a letter of intent (LoI) with battery anode material producer Graphex Group for the sale of 5 000 t/y of graphite from its Bunyu project, in Tanzania, for a period of ten years from the start of production.
The LoI is non-binding and will see the parties enter into a definitive offtake agreement within the next 60 days.
“The company looks forward to completing the definitive offtake agreement with Graphex for the Bunyu graphite product. With strong demand in the graphite market, we are continuing to progress discussions with additional parties in respect to further offtake opportunities,” said Volt MD Trevor Matthews.
“Looking ahead, Volt remains firmly focused on obtaining the development funding for the Bunyu project and moving towards construction and first production. We look forward to providing shareholders with further updates on progress in the near term.”
Volt has a two-stage development strategy for the Bunyu graphite project, with Stage 1 based on a mining and processing plant yearly throughput rate of 400 000 t of ore based on 6.26% total graphitic carbon feed grade to produce on average 23 700 t/y of graphite products.
Stage 2 will produce approximately 170 000 t/y based on the prefeasibility study which was completed in late 2016.