[Tanzania] Armadale signs offtake agreement with Matrass for the Mahenge Liandu Graphite project
Armadale Capital, the AIM quoted investment company focused on natural resource projects in Africa, has signed a Memorandum of Understanding for a proposed offtake agreement with the Matrass Group, a China based graphite mining and processing company, for high quality graphite products produced at the Company’s Mahenge Liandu Graphite Project in Tanzania.
Nick Johansen, Director of Armadale said, “In order to expedite our development objectives at Mahenge Liandu, we have been simultaneously pushing our commercial activities and operational work streams over the past six months with the intention of securing offtake agreements and finalising the various permitting items.
“I am delighted to report that our commercial efforts have been rewarded with this offtake MOU for 60 per cent of our average target annual production with the Matrass Group. Demand for high quality graphite products, such as ours, have been highlighted through other offtake agreements, including ASX listed Black Rock Mining Ltd and the binding offtake for 205,000tpa from its project, which is proximal to Mahenge Liandu. This speaks volumes for the growing market demand for graphite from the region, which boasts some of the highest purity graphite concentrates globally and reinforces our confidence that binding offtake agreements will be secured for our entire 49,000tpa forecast production.
“As recent activities have focused on securing offtake agreements and mine permitting, both of which are making positive progress, we look forward to recommencing activities for the Feasibility Study and we look forward to updating the market further in this regard.”
Armadale has secured a MOU for 30,000tpa over a five-year period with the Matrass Group; a China based graphite mining and processing company.
The Matrass Group is focused on graphite mine development, graphite downstream processing, graphene preparation and application and the supply of advanced building materials.
After completing the drilling required for the feasibility study, site activities for the feasibility study had slowed down over the Tanzanian wet season. The field programme is expected to recommence in the coming weeks.
The Environmental and Social Impact Study has now been completed. A final report for the work by specialist consultant Enviromine has been completed and is expected to be submitted to the National Environmental Management Committee for validation and initiation of environmental permit approval.
The valuation study returned a lower than planned relocation cost for villages living in the proposed mine lease of less than US$1,000,000. This was a result of a smaller than planned area and a lower than expected population density.