SRG Mining Inc. signed a three-year binding off-take agreement for a total of 27,000 tonnes, representing about 20% of the company's anticipated production of its flagship Lola graphite project in Guinea while continuing efforts to sign agreements for 40% to 60% of the planned output over Lola's life.
SRG is engaging with four groups bidding for an engineering, procurement and construction agreement for Lola.
President and COO Ugo Landry-Tolszczuk commented the company is proceeding towards achieving its ultimate goal of building a mine and concentrator capable of producing 54,000 tonnes per annum of high-quality graphite flakes.
The company added Oct. 24 that it expects to receive a mining permit for Lola before the end of the year, which was applied for in April.
Moreover, SRG has begun discussions with institutions interested in financing the construction of the project, with the aim of moving forward as quickly as possible.
In August, the company signed a memorandum of understanding with a U.S.-based industrial firm for the development of Lola, which has a posttax net present value of US$159 million, at an 8% discount rate, based on a July feasibility study.