Battery Minerals Ltd. signed a three-year binding agreement to sell up to 11,000 tonnes of graphite concentrate per year to Urbix Resources LLC.
The off-take, starting in 2019, covers over 20% of the initial forecast annual output from the company's Montepuez project in Mozambique, according to the Dec. 19 release.
Urbix will acquire at least 5,000 tonnes per annum of graphite concentrate and has an option to acquire an additional 6,000 tonnes per annum.
The Arizona-based graphite processor will also have a right to bid for up to 6,000 tonnes per annum of additional production when the Montepuez project expands and a further 6,000 tonnes per annum when the Balama Central graphite project comes on stream.
The company also signed a binding test-work term sheet and memorandum of understanding covering toll treatment and technology commercialization with Urbix.
The test work is expected to cost up to US$500,000 and will be paid in cash and shares.
Under the MOU, Battery Minerals will supply Urbix with graphite flake concentrate for toll treatment using the latter's graphite purification processes.
The companies will also look to commercialize the processing technology, and Battery Minerals will consider investing up to US$1 million in Urbix.