Blencowe Resources (BRES) has signed a non-binding memorandum of understanding relating to natural medium flake concentrate offtake from its Orom-Cross graphite project in Uganda.
The offtake agreement is with Yunasko Ltd, an advanced technology company headquartered in London and Kyiv, and a recognised leader in energy storage and ultracapacitor technologies used across next generation industrial and defence applications.
This new MOU follows recent high level meetings in the United States and Europe and reflects the strong response to ongoing successful test work that has confirmed the high-quality of product from Orom-Cross.
The MOU with Yunasko is for five years and concerns the supply of an initial 500 tonnes per annum of purified medium flake graphite. This is anticipated to increase as the commercial relationship matures.
The product will be further upgraded in Chicago by Blencowe's US technology partner, American Energy Technology Co, enabling Yunasko to purchase a premium-grade materials.
The pricing will be agreed under a formal binding agreement within 24 months.
Blencowe is also advancing discussions in the United States with additional OEMs and leading downstream processors for both large flake products and smaller flake categories. Several groups are currently undertaking qualification test work on Orom-Cross material, and the company anticipates that further MOUs will be concluded as these programmes advance.
"We are pleased to add a further high-quality European offtaker to our growing portfolio, particularly one operating at the forefront of energy storage innovation,” said Blencowe’s executive chairman Cameron Pearce.
“Supercapacitor applications require exceptionally consistent, high-grade material and Orom-Cross, supported by AETC's purification capabilities, is ideally suited to meet this demand. Our graphite is currently undergoing evaluation with a broad range of international end users, and we remain confident of additional offtake agreements following, as these programmes progress. Purified material attracts significantly higher pricing than standard concentrates and these higher value customers provide both market credibility and a meaningful uplift on our weighted average selling price."
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Blencowe cut a high profile at the Resourcing Tomorrow conference that was recently held in London, following the successful conclusion of economic studies on Orom-Cross. It’s not too surprising that the company has moved quickly towards the signing of additional off-take deals now that the detailed potential scope of production is known. Next year will be a big one for Blencowe, as it looks to move towards financing and construction.