Bass Metals announced today that it has signed a sales agreement for its Graphmada graphite project in Madagascar, involving half the expected first production.
The company is close to completing production of 6,000 tons per year and will sell 3,000 tons of large-scale graphite ore per year to Possehl Erzkontor in Germany for three years from January 1.
In terms of pricing, Bess and Bossell agreed to price according to fully transparent end-customer needs, while also taking into account insurance and destination freight costs in the 2010 International Terms of Business.
Portell will distribute through its European network, receiving a 5% commission on sales, with a billing period of 30 days with Bass, which will minimize the company's sales and logistics costs in Europe while maximizing cash flow.
Graphite concentrate will be mainly sold to the refining, casting and furnace industries in Europe, and due to the high quality of the ore quality of the Lafite Motor Graphite Project, the company believes that it has great potential to sell at a good price.
Bass said that compared to other cheap graphite concentrates on the market today, the products of the Lafilmada graphite project have the characteristics of large sheet size, low sulfur and no carbonate.
The demand for graphite in the refining, casting and furnace industries is enormous, accounting for more than 50% of the total global demand.
Bess said this week that its optimization and refurbishment tasks are nearing completion and will come on stream by the end of the year to increase production next year.
Tim McManus, CHIEF Executive of Bass, said the company is now on the road to becoming a profitable producer and that the partnership with Bossell is an important strategic relationship that will help achieve the second phase of 20,000 tons of annual expansion.
In Madagascar, the main processing equipment is already in place, and the construction of the selected production infrastructure is nearing completion.
(Madagascar processing zone site picture from the network)
The modular drying system is expected to be operational in November.
The company is also sending more small samples from existing inventory to potential new customers.
This morning, bass shares rose 8.3% to 1.3 cents.
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