Quantum Graphite Concludes Ore Supply Agreement with Sunlands
Key points
- Quantum Graphite finalized an Ore Supply Agreement with Sunlands Pure Group.
- Sunlands will be the exclusive offtaker of Quantum Graphite's mineral production.
- The agreement includes a 20-year term with an option to extend by another 20 years.
- Quantum Graphite must maintain a minimum rolling JORC 2012 Ore Reserve of 3 years.
- The agreement requires Quantum Graphite to achieve specific mineral production targets.
Full summary
Quantum Graphite Ltd has announced the conclusion of a binding Ore Supply Agreement (OSA) with Sunlands Pure Group. Under the agreement, Sunlands will be the exclusive offtaker of all mineral production from Quantum Graphite's Uley Mines. The OSA includes a 20-year term with an option to extend by another 20 years. Quantum Graphite must maintain a minimum rolling JORC 2012 Ore Reserve of 3 years' mineral production and achieve specific production targets within 7 years of first production. The offtake price will be governed by a cost-plus model with a minimum price delivering Quantum Graphite a margin equivalent to approximately A$375 per tonne of concentrate production.
Guidance
Quantum Graphite to achieve 100ktpa refined production within 7 years of first production
Outlook
Quantum Graphite aims to consolidate its downstream processing and refining activities, enhancing its supply chain control and market scalability.
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