ASX-listed Walkabout Resources has executed a second binding offtake agreement to supply premium graphite from the Lindi Jumbo project in Tanzania, to a Chinese graphite products manufacturer.
The offtake agreement has been signed with Qingdao Risingdawn Graphite Technology Co.
Earlier this month, Walkabout Resources announced the signing of a binding offtake term sheet with Chinese expandable graphite producer, Inner Mongolia Qianxin Graphite (IMQG) – securing the sale of a minimum of 10 000 tpa and a maximum of 20 000 tpa of flake graphite to IMQG for a period of three years following the commencement of production from Lindi Jumbo.
A total of 75% of annual production sales from Lindi Jumbo has now been secured for the first three years.
Advanced offtake discussions with other potential off take partners are continuing.
"This binding offtake with Qingdao Risingdawn together with the recently announced Inner Mongolia Qianxin Graphite term sheet substantially reduces the demand-side risk of the Lindi project, and is very important for our ongoing funding discussions.
“We are seeing an increased level of confidence in our product and a growing interest in our ability to deliver a stable supply of quality, large flake graphite,” notes Walkabout Resources executive chairman Trevor Benson.
Walkabout Resources is developing the high-grade Lindi Jumbo graphite project in South East Tanzania to take advantage of forecast market conditions for large and jumbo flake graphite product.