Peninsula Mines Ltd. signed a nonbinding memorandum of understanding with DNI Metals Inc. for a cooperative joint venture to supply up to 20,000 tonnes per year of large-flake graphite concentrate to South Korean end-users.

The agreement covers the supply, potential development and production of over 180 micron, 95% total graphitic carbon flake graphite concentrate from calendar year 2018.

The companies intend to enter a binding flake graphite concentrate off-take joint venture agreement within six months of the MOU, according to the Aug. 15 release.

Peninsula is incorporating a South Korean subsidiary, Korea Graphite Co. Ltd., to conduct its graphite business and attract funding from Korean investors to advance South Korean and off-shore graphite projects to production.