EcoGraf secures 40,000 tpa German offtake deal
- EcoGraf executed a binding term sheet with an unnamed German trader to purchase 20,000 tonnes per annum of natural flake graphite, doubling to 40,000 tonnes per annum after five years.
- EcoGraf shares were down 12.50% at $0.21 on the ASX following recent project funding updates.
- The agreement runs for 10 years and provides commercial support for future staged expansions of the Epanko Graphite Project.
EcoGraf (ASX:EGR) executed a binding term sheet with a German trader for natural flake graphite sales totalling 20,000 tonnes per annum initially, scaling up to 40,000 tonnes per annum after five years.
The new agreement replaces a previous arrangement and establishes a 10-year term supported by market reference pricing and a protective floor price.
The contract terms specify free on board deliveries from the Port of Dar es Salaam, with pricing adjustments based on flake size and carbon grade.
The company stated that the increased contracted volumes provide support for future staged expansions beyond the initial 73,000 tonnes per annum production capacity.
Following the announcement, the EcoGraf share price was down at $0.21.
EcoGraf continues to develop its flagship Epanko Graphite Project in Tanzania alongside its proprietary purification technology designed to supply the lithium-ion battery market.
The business has secured a combined 40,000 tonnes per annum of contracted sales into the European market alongside existing agreements with TK Accelis Trading GmbH.
