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Lamboo signs MoU with Chinese firm

13th January 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed junior Lamboo Resources has signed a memorandum of understanding (MoU) with China Sciences Hengda Graphite to partner in the development of flake graphite projects.

Under the terms of the MoU, Lamboo would provide Hengda with metallurgical data from its McIntosh project, in Western Australia, which would assist the Chinese firm in conducting commercial production trials. If Hengda’s investigation into the project proved positive, the Chinese firm would purchase flake graphite product from Lamboo.

In turn, Lamboo would use Hengda’s experience in flake graphite mining and production to advance the development of the McIntosh project.

Hengda is China’s only miner and supplier of flake graphite and owns a fully integrated 300 000 t/y mine at Yinjiaping, producing 30 000 t of graphite.

Lamboo MD Richard Trevillion said on Monday that the MoU was a significant milestone for the Australian junior, and confirmed the significant interest that the company had received in its high-quality and -purity flake graphite.

He added that the company was in advanced discussions with several other parties for potential long-term sales contracts.

The McIntosh project currently has a mineral resource of 5.3-million tonnes, grading 4.91% graphite for 262 400 t of contained graphite.

Edited by Creamer Media Reporter

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