Evion Group (ASX:EVG) has executed its first binding offtake agreement for the Maniry Graphite Project in Madagascar with an established German purchaser.
The terms sheet provides for a minimum 10,000 tonnes per annum (tpa) of natural flake graphite concentrate over five years from first production, representing approximately 50,000 tonnes of contracted product.
The volume represents around 26% of the stage one production target of 39,000 tpa, leaving 74% of output uncommitted for additional customers and strategic partners.
Managing Director David Round says this is “the first binding sales commitment in Maniry’s history”.
“[This is] the milestone that changes the conversation about this project. We now have secured tenure, European Union strategic recognition, and a contracted European customer,” Round says.
“An established German buyer has assessed our product and committed to it on a binding basis for five years. That is independent validation of Maniry concentrate that no study can provide, and it is the foundation on which project financing discussions proceed.”
Evion says pricing is determined by reference to published market prices for comparable graphite concentrates, normalised to CIF (cost, insurance, and freight) major German ports, alongside a floor price referenced to the project’s all-in cost of production and debt service obligations. The purchase price for each shipment is the greater of the two to provide downside protection.
The agreement follows the grant of mining permits over all Maniry project areas in July and the project’s recognition by the EU as a ‘Strategic Project’ under its Critical Raw Materials Act.
Evion now intends to execute a definitive long-form offtake agreement within six months while continuing engagement with prospective project financiers and additional customers.
Implementation remains subject to reaching a final investment decision, securing project funding, obtaining necessary approvals, and completing construction.
Evion Group is a critical minerals company focused on mining, exploring, and supplying graphite and fluorspar, with a mine-to-market supply chain across Madagascar, India, Europe, and the US.
Write to Paula Fabe at Mining.com.au
Images: Evion Group
