THE BOURSE WHISPERER: Uranex Limited (ASX: UNX) has signed a Memorandum of Understanding (MoU) for an Off-take Agreement with China National Materials Industry Import and Export Corporation (SINOMA).
SINOMA is a subsidiary of major State Owned Enterprise (SOE) China National Materials Group Corporation, which is responsible for the research, development, construction, production and marketing of non-metallic products in China.
SINOMA Engineering Head Office. Source: Company announcement
Under the MoU, SINOMA has expressed an interest in purchasing 100,000 tonnes of graphite per annum for a period of 5 years with an option to extend for a further 5 years.
The grading of the product is intended to be in the range of 90 per cent to 95 per cent total graphitic carbon (TGC).
“The MoU for 100,000 tonnes per annum for up to 10 years with China National Materials Group Corporation (SINOMA) highlights Uranex as a major emerging player in the world’s graphite market,” Uranex chairman Peter Sarantzouklis said in the company’s announcement to the Australian Securities Exchange.
“To have SINOMA on board, one of the largest producers of high technology materials in the world with assets of $18 billion (US) and revenues of $12 billion (US), clearly demonstrates the significant value in our Nachu graphite project.
“With a significant estimated target resource established, excellent metallurgical results to date, and today’s announcement of an MoU for off-take with a major partner, Nachu continues to confirm that it is a world class project in every sense.”
Uranex said it has been proposed that the graphite is to be used by the SINOMA Group in the production of high technology materials predominantly used in the electronics industry, which not only requires a high grade clean material but also commands a high selling price in the marketplace.