Blencowe Resources (BRES) has signed a non-binding agreement for offtake of natural fine flake concentrate from its Orom-Cross graphite project with Perpetuus Advanced Materials (PAM).
PAM is a UK-based advanced materials innovator with more than a decade of expertise in plasma-treated graphene production.
The agreement pertains to 19,000 tonnes of +97% total graphite content fine flake graphite over an initial five-year term, representing a significant portion of the planned phase one output of 10,000 tonnes per year.
Volumes are likely to rise further, though, as PAM leads the way globally in manufacturing plasma-treated, surface engineered graphenes and sub-micron particles for commercial uses.
Fine flake sales to western markets currently attract in excess of US$1,200 per tonne which is significantly higher than Asian prices for similar products.
Meanwhile, Blencowe has also engaged in advanced discussions with other OEMs and leading downstream processors in the UK, Europe, and the United States. These firms are conducting quality testing of Orom-Cross material following the company's recent marketing roadshow, and early feedback is encouraging.
With PAM on board, though, a pathway to access specialist UK government critical mineral funding has now bee created.
UK government funding schemes linked to domestic critical mineral supply chains require offtake into UK companies that export finished goods.
"This offtake Agreement is one of the most significant to date for Orom-Cross in that it provides substantial sales of fine flake concentrate into a leading western buyer,” said Blencowe’s executive chairman Cameron Pearce.
“Western markets are currently paying considerably more per tonne for fine flake concentrate than Asian markets so the more western contracts we can bring in the better. We understand that PAM intends to leverage its ability to produce industrial quantities of high quality surface engineered graphenes to innovate and develop graphene enabled products. We hope to be providing PAM with considerable quantities of product over a long period into the future as both companies expand our respective operations."
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This agreement signals Blencowe’s continuing commitment to diversify offtakes away from lower-margin bulk markets into higher value applications and cleaner processing technologies. This includes graphene-enabled solutions in automotive, defence, and electronics which are all areas where pricing and margins are typically stronger. PAM has tested and validated Blencowe’s product, so that’s another tick in the box. And adding PAM to the list of Western off-takers continues to underline that Blencowe is presenting the Western world with an alternative and viable source of supply free from Chinese influence.