IMX to offload graphite to China

IMX Resources has signed an offtake deal with a Chinese enterprise for graphite concentrate from its Chilalo project in Tanzania.

Under the terms of the deal, China-Base Ningbo Foreign Trade will pay market prices for the supply of at least 25,000 tonnes of graphite per annum for five years, with a mechanism to be put in place for setting at a floor price or fixed price.

IMX said although China-Base expressed the desire to purchase a larger quantity of graphite from Chilalo, it preferred to diversify its offtake agreements across multiple parties.

China-Base will also be in discussions with IMX over playing a role at Chilalo, including providing funding, procurement and logistics.

“China-Base has also facilitated introductions to parties with respect to plant design, construction and commissioning,” IMX said.

Chief executive Phil Hoskins said China-Base was a sizeable trading company with significant access to end users of graphite.

“With this memorandum of understanding in place, coming on the back of recent initial metallurgical testwork results and a maiden mineral resource estimate, we remain firmly focused on the rapid development of our Chilalo project,” Mr Hoskins said.

China-Base represents end users which are interested in high purity, coarse flake graphite for manufacture of batteries for electric vehicles.

IMX shares were 9 per cent higher to 1.2 cents per share at 11:10am.