(Alliance News) - Natural resources-focused investor Armadale Capital PLC said Friday it has signed a memorandum of understanding for a proposed offtake agreement with Datong Resources, for the supply of graphite products from the Mahenge Liandu graphite project in Tanzania.
Datong Resources is a subsidiary of Chinese enterprise Datong Group, which is focused on five sectors: culture & tourism; mineral resources; medicine & health, clean energy and investment.
The memorandum is for the proposed offtake of 25,000 tonnes per annum of graphite concentrate, for an initial term of five years and at a price to be agreed based on the Chinese benchmark for the quality of the graphite produced.
The agreement is in addition to Armadale's memorandum of understanding with Chinese miner Matrass Group in February for 30,000 tonnes per annum, and with Chinese technology firm CoolRU Information Technology for 5,000 tonnes per annum.
"Today’s offtake MOU marks a highly significant point in the transition of our company from explorer to emerging producer and brings our offtake MOU portfolio to a point which exceeds the initial planned production from Mahenge Liandu," said Director Nick Johansen.
"The ability to secure offtake MOUs of this magnitude demonstrates the robust nature of Mahenge Liandu and completes an important step as we proactively progress its development," Johansen added.
Shares in Armadale Capital were up 9.0% at 2.40 pence on Friday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Armadale Capital (ACP)