International Graphite (ASX:IG6) has signed a memorandum of understanding (MoU) for an option agreement to lease a site for its proposed Collie Battery Anode Material (BAM) Facility in Western Australia.
Under the terms of the MoU, the company will negotiate a lease over about 20 hectares of privately owned land in the Coolangatta industrial precinct, about 5km northeast of the Collie town centre.
International Graphite reports the lease period will be 20 years, with a 20-year extension also available. The company’s option may be exercised at any time within a 2-year period, and full details of the commercial lease will be progressed during the option period.
Commenting on the MoU, International Graphite Chief Executive Officer (CEO) and Managing Director Andrew Worland says securing the Collie site is a ‘significant milestone’ in the development of the proposed Collie Graphite BAM Facility.
“The land is cleared, well-served by sealed roads and civil infrastructure, with ample space to accommodate our initial design and future expansion plans.
“Most importantly, it is only metres from the existing power network, which gives us the opportunity to purchase energy at the lowest possible transmission cost”
Most importantly, it is only metres from the existing power network, which gives us the opportunity to purchase energy at the lowest possible transmission cost.”
International Graphite reports the agreement follows the release of a Scoping Study for the Collie Graphite BAM Facility last month. In addition to being within metres of the poles and wires network, the company says the site has sufficient area for installing a solar facility.
International Graphite is an emerging supplier of processed graphite products, including battery anode material for the global electric vehicle and renewable energy sectors.
The ASX-listed company holds the Springdale Graphite Project near Hopetoun in Western Australia, along with a proposed commercial-scale downstream processing facility at Collie.
Images: International Graphite Ltd
