Battery metals: Walkabout’s graphite is flying off the shelf
Walkabout Resources’ (ASX:WKT) graphite is selling itself, with the emerging producer having locked in its third sales deal in two weeks.
The company told investors today that it had signed a binding sales, purchase and marketing agreement with international commodities trading house Wogen Pacific for its Lindo Jumbo graphite project in Tanzania.
The news edged shares up 5.3 per cent to 20c in early morning trade.
This latest deal comes two days after Walkabout announced its second offtake deal for a quarter of its planned production.
Wogen has a “particularly strong presence” in Asia, Europe and the USA, which includes significant logistics infrastructure, buying networks and industry relationships, according to Walkabout.
The international trading house will actively market Walkabout’s graphite concentrate globally and will initially contract to buy and market a minimum of 10,000 tonnes up to a maximum of 30,000 tonnes per annum of concentrate for five years.
Walkabout chairman Trevor Benson says the deal with Wogen means the company will not need to establish large and expensive marketing offices across several jurisdictions to manage its sales, customer relations and global logistics.
“The company will be able to leverage the marketing expertise of Wogen across the globe for sales at favourable prices, and to secure additional offtake agreements,” he said.
Walkabout will receive an advanced payment based on 80 per cent of the value for each consignment of concentrate contracted by Wogen.
Wogen chairman Alex Williams says the agreement with Walkabout will give the international trading house an increased presence in the battery sector.
Anson Resources (ASX:ASN) has reported a 320 per cent increase in brine flow rates from the Long Canyon No. 2 well at its Paradox Brine project in Utah. The company says flow rates have increased significantly in both the Long Canyon No. 2 and Skyline Unit 1 wells, which are averaging 2,700 and 6,000 barrels per day, respectively. The latest data will be used to estimate a resource.