London-listed Blencowe Resources has signed its first nonbinding memorandum of understanding (MoU) for natural large flake concentrate offtake from the Orom-Cross graphite project, in Uganda.
Under the terms of the MoU, vertically integrated graphite producer Jilin New Technology Graphite intends to buy 15 000 t/y of large-flake graphite from the mine. This equates to about 66% of the Orom-Cross large-flake production for up to three years from the start of operations.
The MoU follows extensive discussions between Blencowe's senior management during a recent visit to China, as well as the successful bulk testing of graphite concentrate produced at Orom-Cross.
Jilin is the parent company of a group that completed a 100 t bulk sample for Blencowe in 2023 and is currently undertaking a 600 t bulk sample processing programme, which is nearing completion.
The 600 t bulk sample will generate commercial-scale graphite concentrate divided into large and small flakes. The small-flake concentrate will be upgraded to 99.95% by a Chinese spheronised purified graphite producer, to be distributed to original-equipment manufacturers for their own testing.
This exercise is expected to be completed in the third quarter of this year, facilitating qualification of Orom-Cross small-flake products with tier-one offtakers and paving the way for offtake agreements that are under discussion.
"This MoU is a key milestone for the company and it is just the beginning. We anticipate announcing several more agreements over the next few months. Jilin is a leading graphite company globally and this is a strong endorsement of the graphite product from Orom-Cros," says Blencowe CEO Cameron Pearce.
The graphite miner is hopeful of securing further MoUs, while advancing a definitive feasibility study for Orom-Cross.