Stratmin Global Resources PLC Off-take Agreement Signed (8565U)
October 21 2014 - 5:00AM
UK Regulatory
TIDMSTGR
RNS Number : 8565U
Stratmin Global Resources PLC
21 October 2014
21(st) October 2014
StratMin Global Resources Plc
("StratMin" or the "Company")
Off-Take Agreement Signed
StratMin (AIM: STGR), the graphite production and exploration
company with assets in Madagascar, announces it has entered into an
Offtake Agreement with one of the world's largest independent
processors and merchants of graphite (the "Buyer") to sell its
natural flake graphite product to the Buyer with effect from 20(th)
October 2014 (the 'Agreement').
Terms of the Agreement
The Agreement was signed on 16 October 2014 between StratMin and
the Buyer. The terms of the Agreement state that the Buyer will
purchase all the material that StratMin can produce within a
pre-determined product specification. The Buyer will further have a
first option to purchase all other material produced by StratMin,
wholly at its discretion. All product purchases will be made Free
on Board Tamatave, Madagascar.
Within the initial five year agreement, StratMin and the Buyer
will agree, in advance and on a rolling basis, pricing for the six
months ahead. This mechanism will allow both parties to reset
prices to reflect any changes in the open market. The parties have
four months from the pricing reset date to agree the pricing for
the succeeding six months and either party may terminate the
Agreement within six months following the pricing reset date. The
Agreement sets the first 12 months' volumes, grades and fraction
characteristics, which will be subject to an annual review
thereafter.
In conjunction with the commercial terms of the Agreement, the
Buyer has separately agreed to provide technical assistance to
StratMin by sharing graphite marketing information and its own
processing knowledge. Over time, the Board expects this partnership
to improve StratMin's ability to produce and market a world class
graphite product which should command a premium price.
Manoli Yannaghas, Managing Director, said;
"I am delighted to announce this agreement and see it as a
significant commercial advance for StratMin We have already sold
small quantities of product to the Buyer and know the business
well. Securing this initial five year offtake agreement
demonstrates confidence in the quality and potential of StratMin's
product and operations from an established graphite processing and
trading company. The existing relationship has been highly
cooperative already so I am looking forward to working closely with
one the most respected graphite companies in the market to the
benefit of StratMin.
"Management appreciates our shareholders' patience this year as
we have optimized the production process in order to be able to
achieve superior pricing for a higher quality product. We believe
that securing unfettered access to the graphite market through the
Agreement vindicates our strategy to date.
"This is very big step forward for StratMin, as the first
AIM-listed graphite producer, and now supplier, we look forward to
fulfilling this contract and building a promising future for the
Company"
For further information please visit www.stratminglobal.com or
contact:
StratMin Global Resources Plc +44 (0) 20 3691
Manoli Yannaghas (Managing Director) 6160
Strand Hanson (Nomad & Financial Adviser) +44 (0) 20 7409
James Spinney / Ritchie Balmer 3494
Hume Capital Securities Plc (Sole Broker) +44 (0) 20 3693
Jon Belliss / Abigail Wayne 1470
Blytheweigh (Financial PR) +44 (0) 20 7138
Halimah Hussain / Eleanor Parry 3204
This information is provided by RNS
The company news service from the London Stock Exchange
END
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