Volt Resources (ASX:VRC) has signed a binding offtake agreement with listed battery anode material producer Graphex Group’s (HKG:6128) subsidiary Graphex Michigan 1.
The offtake agreement is for the sale of about 10,000 tonnes per annum (tpa) of Bunyu Graphite fine natural flake product. The company says it will provide the fine flake graphite product annually from its Bunyo Graphite Project in Tanzania for an initial 5-year term with the option to extend the offtake agreement for a further 5 years.
Under the agreement, Volt reports all its stage one Bunyu fine graphite product will be sold.
Volt notes the agreement was signed by its wholly owned subsidiary Volt Graphite Tanzania alongside Graphex Group subsidiary Graphex Michigan 1.
Graphex Group represents a volume producer of spherical graphite for lithium-ion battery anodes and is listed on the Stock Exchange of Hong Kong (SEHK), as well as the New York Stock Exchange (NYSE).
With the offtake agreement between both parties now signed, Volt Resources announces negotiations are continuing with other parties for coarse graphite offtakes produced from the stage one Bunyu project.
Speaking on the offtake agreement, Volt Resources Chief Executive Officer (CEO) Prashant Chintawar says: “With projected strong demand in the graphite market, we are continuing to progress discussions with additional parties in respect to further graphite offtake opportunities.
“With projected strong demand in the graphite market, we are continuing to progress discussions with additional parties in respect to further graphite offtake opportunities”
Looking ahead, Volt remains firmly focused on obtaining the development funding for the Bunyu Project and moving towards construction and first production. We look forward to providing shareholders with further updates on progress.”
Volt Resources is an ASX-listed critical minerals and battery material company that is emerging as a natural graphite anode producer. The company’s wholly owned Bunyu project is located in Tanzania, East Africa and is situated near critical infrastructure with sealed roads running through the project area.
Images: Volt Resources Ltd
