The company signed a deal with private Arizona company Urbix Resources for up to 11,000 tonnes per annum of graphite concentrate at 95% total graphitic carbon.

Urbix will acquire at least 5000tpa and has an option to buy another 6000tpa.

The three-year deal starts in 2019, to coincide with planned first production, and will have an option to extend for a further three years.

Once Montepuez production expands, Urbix will have the right to acquire another 6000tpa of graphite concentrate.

Urbix has also agreed to complete test work on Battery’s concentrates to determine the viability of the US company’s spheronisation and purification process.

The cost of the test work will be around US$500,000, which Battery expects to pay for 50:50 in cash and shares.

The two companies have also signed a memorandum of understanding for toll treatment and technology commercialisation.

The toll treatment deal envisages a toll process purification agreement with Urbix supplying Battery with its purification processes, whereby Urbix will upgrade concentrates from 95-97% TGC to 99.5%.

It is then contemplated that the two companies will negotiate in good faith to commercialise the technology, with Battery to consider investing up to $1 million in Urbix.

Battery executive chairman David Flanagan said the Urbix deal was significant for three reasons.

“It reflects the quality of the Montpuez product, it highlights the outstanding future of the project, and it underpins the sale of a significant share of our forecast production,” he said.

“We will also be working with Urbix to develop and market the products to sell into the US battery market.

“Ongoing market development will include optimising development of a spherical graphite for use as anode material in lithium-ion batteries as part of an international marketing strategy.”

Battery is aiming to start construction at Montepuez early next year for commissioning in December 2018.

The project has capital costs of $42.3 million for an operation producing 45,000-50,000 tonnes per annum of graphite flake concentrate at operating costs of $337 per tonne.

Average annual earnings before interest, tax, depreciation and amortisation are expected to be in excess of $20 million and the payback period is set to be less than two years.

 

Battery raised A$20 million last month at 6c per share to fast-track the Montepuez and Balama graphite projects, both in Mozambique.

 

Shares in Battery rose by 0.2c this morning to 6.8c.The company signed a deal with private Arizona company Urbix Resources for up to 11,000 tonnes per annum of graphite concentrate at 95% total graphitic carbon.

 

Urbix will acquire at least 5000tpa and has an option to buy another 6000tpa.

The three-year deal starts in 2019, to coincide with planned first production, and will have an option to extend for a further three years.

Once Montepuez production expands, Urbix will have the right to acquire another 6000tpa of graphite concentrate.

Urbix has also agreed to complete test work on Battery’s concentrates to determine the viability of the US company’s spheronisation and purification process.

The cost of the test work will be around US$500,000, which Battery expects to pay for 50:50 in cash and shares.

The two companies have also signed a memorandum of understanding for toll treatment and technology commercialisation.

The toll treatment deal envisages a toll process purification agreement with Urbix supplying Battery with its purification processes, whereby Urbix will upgrade concentrates from 95-97% TGC to 99.5%.

It is then contemplated that the two companies will negotiate in good faith to commercialise the technology, with Battery to consider investing up to $1 million in Urbix.

Battery executive chairman David Flanagan said the Urbix deal was significant for three reasons.

“It reflects the quality of the Montpuez product, it highlights the outstanding future of the project, and it underpins the sale of a significant share of our forecast production,” he said.

“We will also be working with Urbix to develop and market the products to sell into the US battery market.

“Ongoing market development will include optimising development of a spherical graphite for use as anode material in lithium-ion batteries as part of an international marketing strategy.”

Battery is aiming to start construction at Montepuez early next year for commissioning in December 2018.

The project has capital costs of $42.3 million for an operation producing 45,000-50,000 tonnes per annum of graphite flake concentrate at operating costs of $337 per tonne.

Average annual earnings before interest, tax, depreciation and amortisation are expected to be in excess of $20 million and the payback period is set to be less than two years.

Battery raised A$20 million last month at 6c per share to fast-track the Montepuez and Balama graphite projects, both in Mozambique.

Shares in Battery rose by 0.2c this morning to 6.8c.