THE BOURSE WHISPERER: Uranex Limited (ASX: UNX) has a signed a Memorandum of Understanding (MOU) for an off-take agreement with a Joint Venture between China-based Sinosteel Liaoning Co Ltd and Dalian InterContinental New Materials Corp.
The deal follows the company’s recently-announced first Nachu project graphite MOU for offtake agreement with China National Materials Industry Import and Export Corporation (SINOMA).
Under the latest MOU, Sinsoteel Liaoning and Dalian InterContinental New Materials have expressed interest in purchasing 100,000 tonnes of graphite per annum for 10 years with an option to extend.
The grading of the product is intended to be in the range of 92 to 95 per cent total graphitic carbon (TGC).
“The MOU for 100,000 tonnes per annum for a minimum of 10 years with Sinosteel Liaoning and Dalian InterContinental highlights Uranex as a significant emerging player in the world’s graphite market,” Uranex CEO Dr Frank Houllis said in the company’s announcement to the Australian Securities Exchange.
“Sinosteel Corporation is known worldwide as a leader in the resources industry with revenues of $US20 billion in 2013.
“It demonstrates the high value of the company’s Nachu graphite project as there are now MOUs with two major players in the graphite industry totaling 200,000 tonnes per annum, which is Uranex’s target annual production rate.
“We are unaware of any other graphite producer or explorer worldwide that has secured such large off-take MOUs for graphite destined for high-end products.
“The large flake graphite Uranex expects to mine should command superior prices.
“Today’s announcement, our current drilling program and the commencement of our pre-feasibility study shows the great progress being made.
“With each milestone achieved it strengthens Nachu’s credentials as a world class project.
“The Board of Uranex thanks Sinosteel Liaoning and Dalian InterContinental on this initial agreement and we look forward to a long successful working relationship.”