JOHANNESBURG (miningweekly.com) – Australian junior Magnis Resources on Monday announced the signing of a memorandum of understanding (MoU) with China-based Sinoma for the financing, design and construction of the Nachu graphite project, in Tanzania.
The ASX-listed company said in a statement on Monday that the MoU was considered to be the first step in proceeding to a formal binding agreement.
“A leading role by Sinoma in financing, design and construction will substantially derisk the Nachu project,” chairperson Frank Poullas stated.
In December, Magnis signed an 80 000 t/y binding agreement with vertically integrated Sinoma for graphite offtake from the Tanzania operation, which was followed by a 100 000 t/y agreement in place with China-based Sinosteel in January.
The company has also recently signed a MoU with China Railway 24th Bureau Group for an engineering, procurement, construction and contract mining contract, estimated to be worth about $150-million.