Battery Minerals signs 3 rd binding Offtake Agreement
with Qingdao Black Dragon Graphite Co. Ltd
Total sales now up to 60% of stage 1 production
• Latest binding offtake agreement covers another 10,000 tonnes of graphite concentrate per annum at a minimum 95% TGC
• The initial term of the agreement is three years
• 60% of Montepuez’s forecast production now subject to binding offtake agreements
Battery Minerals Limited (ASX Code: BAT, “Battery Minerals”) is pleased to advise that it has signed a third binding offtake agreement, this time with Qingdao Black Dragon Graphite Co. Ltd (“Black Dragon”), for 10,000 tonnes a year of graphite concentrate from its Montepuez project in Mozambique for an initial term of 3 years.
Black Dragon is a privately-owned company based in Shandong in China with extensive expertise in mining, production, downstream processing and marketing of graphite.
Battery Minerals Executive Chairman David Flanagan said: “The Montepuez is rapidly gaining momentum, as demonstrated by the fact that we now have three binding agreements covering 60 per cent of our forecast annual production.
“At the same time, we are in discussions to finalise the Mining Licence and we are rapidly advancing the Montepuez project as part of our strategy to be in production by December 2018 and complete our first shipment in the March Quarter of 2019.”
Battery Minerals signs binding offtake agreement
with Qingdao Guangxing Electronic Materials Co. Ltd
• Latest agreement covers 10,000 tonnes a year of graphite concentrate at a minimum 95% TGC
With the $20m over-subscribed capital raising now closed, the Company has appointed the lead design engineer, ordered the primary crusher and is about to recruit key personnel.
- Appointment of lead design engineers DRA and Minnovo to do the detailed design work on the process plant for Montepuez
- Extensive recruitment campaign now underway to fill senior development roles
- Order placed for primary crusher, which is already under construction and has a capacity of over 1.3 million tonnes a year
The Company has placed an ordered for a new primary crusher, which is already under construction and expected to arrive on site in March 2018. The primary crusher has a capacity of more than twice Montepuez’ requirements, giving it ample ability to meet the Company’s needs for the planned expansion in 2020. It will be delivered at a significant discount to quotes received as part of the Value Engineering Study completed in November 2017.
Battery Minerals has also appointed highly experienced lead design engineers DRA and Minnovo to complete the detailed design work on the process plant for Montepuez.
To help ensure the development of Montepuez can proceed as quickly as possible, Battery Minerals is also pleased to advise that it is has initiated an extensive recruitment campaign. This will be aimed at identifying key development and technical personnel for roles in Perth and Mozambique.
The Montepuez Graphite Project development preparations follow the completion of Battery Minerals’ highly successful capital raising in November 2017, in which the Company raised $20 million in a heavily over-subscribed share placement.
Placement heavily over-subscribed amid strong demand from Australian and overseas institutions
- Battery Minerals has received commitments for $20m via a $19.5m share placement at 6c and $500,000 via a drilling-for-equity arrangement
- Placement was strongly supported by Battery’s largest shareholder, which has maintained its ~12.6% interest in the Company, and institutions
- The Company is now fully-funded for its next phase of growth, including:
- Significant drilling programme underway at Montepuez, with results due shortly
- Planning and early development works at Montepuez
- Accelerate DFS at Battery Mineral’s Balama graphite project
Battery Minerals Limited (ASX:BAT) (“Battery Minerals” or the “Company”) is pleased to announce that it has received commitments from institutional, sophisticated and professional investors to raise $20 million (“Capital Raising”).
Battery Minerals Executive Chairman David Flanagan said: “This capital raising is a key milestone in the Company’s strategy to become a graphite supplier to the lithium battery industry. The overwhelming support we have received from investors around the world reflects the quality of our project and its outstanding potential to tap into the lithium battery market.
“We have received a huge response to our strategy to develop a project with low capital costs, limited funding requirements and a short lead-time to production. This approach will enable us to maximise financial returns and minimise risks and time delays, enabling us to capitalise on the huge opportunity unfolding in the energy sector as quickly and efficiently as possible.”
Montepuez Graphite Project
- Value Engineering Study results received
- Mining Licence Application progressing well
- Montepuez Timeline to production and ramp up is 14 months
- Environmental Impact Assessment completed and submitted
- infill grade control drilling to start in November 2017
Balama Central Graphite Project
- Battery moves to DFS following positive concept study
- Diamond drilling to start in December 2017 Quarter Product Marketing Strategy
- Battery Minerals signs MoU with leading Japanese flake and spherical graphite trader and producer MEIWA Corporation
- MoU with Chinese integrated graphite producer Qingdao Guangxing Electronic Materials Co. Ltd
Graphite-development company Battery Minerals Limited (ASX: BAT) is pleased to report on the strong progress it has made in the September 2017 Quarter towards bringing its Montepuez Graphite Project in Mozambique into development with the publication on 18 October 2017 of the results of the Value Engineering Study work, that occurred during the Quarter.
The Mining Licence Application for the Montepuez Graphite Project is progressing well following presentations to government during the September 2017 Quarter. Battery has also completed the Environmental Impact Assessment for Montepuez and submitted this to authorities.
In addition, during the September 2017 Quarter the Company worked on completing a Concept Study on its Balama Central Graphite Project. Subsequent to the end of the September 2017 Quarter, the results of the Concept Study work were reported on to ASX on 26 October 2017. Battery Minerals has decided to proceed with a Definitive Feasibility Study (DFS) on the Balama Central Graphite Project.
As at the end of September 2017, the Company maintained a cash position of $4.1M.
Subsequent to the end of the September 2017 Quarter, Battery Minerals announced the signing of two MoUs, one with leading Japanese flake and spherical graphite trader and producer MEIWA Corporation and another with Chinese integrated graphite producer Qingdao Guangxing Electronic Materials Co. Ltd.
- Infill drilling has commenced at the Balama Central Graphite Project in Mozambique
- The program aims to convert a portion of the Inferred Resource of 7.4Mt at 11.8%Total Graphitic Carbon to the Indicated category
- The upgraded Resource will form part of the Balama Definitive Feasibility Study, which is due for completion in mid-2018
- Balama drilling will take place in parallel with infill drilling underway at Montepuez, the Company’s flagship graphite project in Mozambique
- Battery Minerals on track for production start at Montepuez late next year
Battery Minerals (ASX: BAT) is pleased to announce that it has taken another key step in its strategy to establish the Balama Central Graphite Project in Mozambique as its second operation, with infill drilling now underway as part of the Definitive Feasibility Study.
The Balama drilling programme will comprise approximately 1000m of core drilling focused on the Lennox and Byron deposits. The program will take place at the same time as Battery Minerals undertakes infill grade control drilling at its flagship Montepuez graphite project in Mozambique.
Construction at Montepuez is scheduled to start early next year with first production earmarked for the December quarter, 2018. “Every round of results we receive, whether it be drilling, metallurgy or economic studies, provides more strong evidence that our plan to develop a pipeline of graphite projects is progressing well,” Battery Minerals Executive Chairman David Flanagan said. “This will position us ideally to capitalise on the booming lithium battery market and growing demand from other industries.” Balama Details On 21 March 2016, Battery Minerals announced a Mineral Resource at Balama of 16.3Mt at 10.4% TGC for 1.7Mt of contained graphite made up of: • Indicated Mineral Resource: 8.9Mt at 9.3% TGC • Inferred Mineral Resource: 7.4Mt at 11.8% TGC