Triton Minerals Ltd. said Feb. 8 that it signed a term sheet with Qingdao Tianshengda Graphite Co. Ltd. for the off-take of up to 16,000 tonnes per annum of graphite concentrate from the Ancuabe graphite project in Mozambique for an initial five years.
Triton will supply a minimum volume commitment of 2,500 tonnes per quarter, and both parties will agree to annual volumes three months before the relevant period. Pricing will be set every six months at prevailing market prices.
Both Triton and Tianshengda intend to sign a binding off-take agreement by March 15.
A definitive feasibility study for Ancuabe in December 2017 estimated a pretax net present value, discounted at 10%, of US$298 million, a 36.8% internal rate of return and a 3.8-year payback period.
