Blencowe signs additional offtake agreement for purified graphite
Blencowe Resources () has signed a non-binding memorandum of understanding with Apollo Energy Systems Inc. regarding offtake of purified graphite sourced from its Orom-Cross graphite project in Uganda.
Apollo is based in Florida, United States, and specialises in advanced lead acid battery storage systems.
The agreement is part of Blencowe's strategy to secure a diversified range of international buyers across different applications for its graphite product.
The indicative framework of the agreement is for 250 tonnes per annum of purified small flake graphite, with final pricing to be agreed within 24 months.
Similar purified graphite products sell in the region of US$8,000 per tonne, highlighting substantial profitability on sales like this - over and above typical sale of concentrates.
Apollo has already successfully tested Orom-Cross graphite products and will now advance its internal product qualification and due diligence to support formal agreement discussions.
Meanwhile, further offtake discussions continue with multiple global graphite end-users, including leading OEMs.
While the Apollo MOU represents a small component of the proposed 5,000 tonnes per year Phase 1 production that is planned for Orom-Cross, the purification, which will be undertaken by AETC in Chicago, elevates the value of fine flake concentrate, transforming a traditionally lower-margin product into a high-value offering.
Blencowe continues to advance discussions with multiple US-based OEMs and leading graphite buyers, covering both large flake and small flake products. Following high-level engagements in the United States, several industry players have initiated quality testing of Orom-Cross graphite.
Discussions in the USA have been positive, and Blencowe will continue to work with these parties as well as others industry leaders worldwide.
"Following a successful marketing tour of the USA, this MOU is the first of several that we anticipate bringing to market near term,” said Blencowe’s chairman Cameron Pearce.
“It builds on our initial agreement with Jilin, announced in 2024, to supply up to 15,000tpa large flake concentrate. Blencowe continues to execute key milestones as we progress towards an investment decision post-DFS. Orom-Cross stands out as truly a unique graphite project - combining scale, lowest capital and operating costs, and exceptionally high-purity end-products. These factors collectively position us ahead of most peers and reinforce the long-term value of the project."
View from Vox
The MOU with Apollo goes a long way towards validating the quality of graphite that Orom-Cross will produce. This tick in the box will in turn underpin ongoing strategic financing discussions with key institutions including the DFC and AFC. The next major step will be the release of the definitive feasibility project, at which point the hard numbers will tell us just how good Orom-Cross really is. But so far, the signs are good.
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