A term sheet has been signed with Qingdao Tianshengda Graphite Co. Ltd which sets the framework for a binding offtake agreement.
This is expected to result in the annual supply of 16,000 tonnes of graphite concentrate from Ancuabe for an initial 5-year period with a minimum quarterly commitment of 2,500 tonnes.
Binding agreement by 15 March
It is the intention of both parties to convert the term sheet into a binding offtake agreement by 15 March 2018.
The term sheet details the initial offtake term, concentrate volume, pricing mechanism, payment and delivery terms, and product specifications.
Both parties will agree to annual volumes three months before the relevant period and pricing is set every six months at prevailing market graphite prices.
Tianshengda is based in Shandong Province and produces a range of graphite products including expandable graphite, flake graphite, and powder graphite.
Other offtake discussions
Triton continues to progress offtake discussions with other parties and is targeting completion of these agreements by the end of the second quarter of 2018.
It is on track to secure offtake agreements for 50% of Ancuabe production.
Strong demand from China
The term sheet demonstrates the early success of Triton’s sales and marketing strategy.
It also indicates the demand for large flake, high purity graphite in the Chinese market and underlines the quality of the Ancuabe project.