London-listed Blencowe Resources has signed a new nonbinding memorandum of understanding (MoU) for natural medium-flake graphite offtake from its Orom-Cross project, adding energy storage company Yunasko as a prospective buyer of purified graphite during the project’s first five years of production.

The company said on December 9 that the agreement follows recent senior management engagements in the US and Europe, as well as ongoing testwork that has confirmed consistent product quality from the Ugandan graphite deposit.

The MoU covers medium-flake material of over 100 mesh size and provides for an initial supply of 500 t/y, with pricing to be determined under a binding contract that is expected to be concluded within 24 months.

Blencowe noted that Yunasko’s requirement was expected to increase over time as the commercial relationship progressed.

Blencowe said the product destined for Yunasko would be further upgraded in Chicago by its US technology partner American Energy Technology Co (AETC), allowing Yunasko to buy premium-grade material for use in its advanced energy storage systems.

The company added that the agreement came alongside completion of its definitive feasibility study and followed substantial product qualification work undertaken with Yunasko. Blencowe was also continuing discussions in the US with original-equipment manufacturers and downstream processors for both large- and small-flake graphite, with several groups currently testing Orom-Cross material.

Blencowe said it anticipated concluding additional MoUs as these programmes advanced and was engaging with further potential offtakers globally to build a diversified suite of sales agreements ahead of first production.

"Supercapacitor applications require exceptionally consistent, high-grade material and Orom-Cross, supported by AETC's purification capabilities, is ideally suited to meet this demand.

“Our graphite is currently undergoing evaluation with a range of international end-users and we remain confident of additional offtake agreements following as these programmes progress.

“Purified material attracts significantly higher pricing than standard concentrates and these higher value customers provide both market credibility and a meaningful uplift on our weighted average selling price," Blencowe executive chairperson Cameron Pearce said.

"Our testing, together with AETC’s purification and downstream processing work, confirms that Orom-Cross provides material of particularly high suitability for these advanced applications.

“The use of premium purified graphite will further strengthen Yunasko's ability to develop cutting-edge systems and we look forward to a long and productive relationship as Blencowe moves towards first production," Yunasko executive chairperson Yurii Maletin added.