Graphite miner Syrah Resources has made available a 5% non-diluting free carried equity interest in its Mozambique subsidiary Twigg Exploration and Mining Limitada to Mozambique government entity, Empresa Mocambicana de Exloracao Minera.
This is in accordance with the Mining Agreement between Syrah Resources Limited and the Government of the Republic of Mozambique.
As the next step in making that 5% equity interest available, a shareholders’ agreement (known locally as a ‘Quotaholders Agreement’) has been executed by the Syrah Resources, its subsidiaries and Empresa Mocambicana de Exloracao Minera.
The purpose of the Quotaholders Agreement is to govern the relationship between the Syrah Group and the Mozambique government entity as quotaholders and set out how certain aspects of Twigg’s affairs will be conducted.
Syrah Resources’ MD and CEO, Shaun Verner says:
“The execution of the Quotaholders Agreement is a further demonstration of the constructive nature of the relationship between Syrah and the government in Mozambique. Syrah looks forward to a positive relationship with Empresa Mocambicana de Exloracao Minera, supporting Twigg’s long-term and sustainable success in Mozambique.”
In recent news
Syrah Resources announced in June that it had executed a binding agreement with Asia-focused trading company Gredmann for sales from its Balama graphite operation into China.
As per the agreement, Syrah Resources’ Balama graphite operation in Mozambique will supply 9 000 tpm of fines natural graphite across a range of fixed carbon grades – commencing from June 2019 until December 2021 – for a total of 279 000 t (108 000 tpa pro rata).
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Syrah Resources says that this new agreement provides more attractive payment terms for than its previous sales contracts.
Gredmann, which has a well-established Chinese sales network across more than 200 industrial products, chemicals and battery materials, will now be Syrah’s preferred trader of standard fines products in China for the term of the agreement, with direct sales continuing to certain end users.