Volt signs offtake agreement

3rd March 2017

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Graphite developer Volt Resources has signed a binding offtake agreement with US-based Nano Graphene for a minimum of 5 000 t of flake graphite over a five-year period.

The offtake period would start in the first quarter of 2018.

“Securing a binding offtake agreement from a US-based graphene group at this point in Volt’s history is a remarkable achievement,” said CEO Trevor Matthews.

“This continues the positive feedback from end-users, and [also confirms] independent testwork regarding the beneficial properties of Volt’s Namangale graphite concentrate.”

The offtake agreement comes as Volt starts definitive feasibility studies on its Namangale project, in Tanzania, where a prefeasibility study previously considered a number of production scenarios ranging from 60 000 t/y to 240 000 t/y of graphite concentrate over a mine life of 20 years.

Matthews said on Friday that the offtake agreement would allow Volt to move to producer status and start cash flow generation from small-scale mining and processing in 2018, much earlier than originally planned.

The company was planning to build on the binding sales agreement and was reviewing its production options, including third-party processing, with respect to small-scale production in 2018.

Edited by Creamer Media Reporter

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