Stratmin Global Resources Regulatory News (STGR)

21st October 2014

StratMin Global Resources Plc

("StratMin" or the "Company")

Off-Take Agreement Signed

StratMin (AIM: STGR), the graphite production and exploration company with assets in Madagascar, announces it has entered into an Offtake Agreement with one of the world's largest independent processors and merchants of graphite (the "Buyer") to sell its natural flake graphite product to the Buyer with effect from 20th October 2014 (the 'Agreement').

Terms of the Agreement 

The Agreement was signed on 16 October 2014 between StratMin and the Buyer. The terms of the Agreement state that the Buyer will purchase all the material that StratMin can produce within a pre-determined product specification. The Buyer will further have a first option to purchase all other material produced by StratMin, wholly at its discretion. All product purchases will be made Free on Board Tamatave, Madagascar.

Within the initial five year agreement, StratMin and the Buyer will agree, in advance and on a rolling basis, pricing for the six months ahead. This mechanism will allow both parties to reset prices to reflect any changes in the open market. The parties have four months from the pricing reset date to agree the pricing for the succeeding six months and either party may terminate the Agreement within six months following the pricing reset date. The Agreement sets the first 12 months' volumes, grades and fraction characteristics, which will be subject to an annual review thereafter.

In conjunction with the commercial terms of the Agreement, the Buyer has separately agreed to provide technical assistance to StratMin by sharing graphite marketing information and its own processing knowledge. Over time, the Board expects this partnership to improve StratMin's ability to produce and market a world class graphite product which should command a premium price.

Manoli Yannaghas, Managing Director, said;

"I am delighted to announce this agreement and see it as a significant commercial advance for StratMin We have already sold small quantities of product to the Buyer and know the business well. Securing this initial five year offtake agreement demonstrates confidence in the quality and potential of StratMin's product and operations from an established graphite processing and trading company. The existing relationship has been highly cooperative already so I am looking forward to working closely with one the most respected graphite companies in the market to the benefit of StratMin.

"Management appreciates our shareholders' patience this year as we have optimized the production process in order to be able to achieve superior pricing for a higher quality product. We believe that securing unfettered access to the graphite market through the Agreement vindicates our strategy to date.

"This is very big step forward for StratMin, as the first AIM-listed graphite producer, and now supplier, we look forward to fulfilling this contract and building a promising future for the Company"

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