Focus Graphite Signs Offtake Agreement for Lac Knife's Future Graphite Production
15:51 EST Thursday, December 19, 2013
OTTAWA, ONTARIO--(Marketwired - Dec. 19, 2013) - Focus Graphite Inc. (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) (the "Company") announced today it has entered into an offtake agreement for the future production from Lac Knife's graphite resource located 27 km southwest of Fermont, Quebec.
The strategic agreement for up to 40,000 tonnes per year of graphite concentrate and value added products was signed on December 19, 2013 by the Company with an industrial conglomerate, comprised of heavy industry, manufacturing and technology companies located Dalian City, Liaoning Province, China.
The 10-year agreement calls for the supply of up to 40,000 tpy of large, medium and fine flake graphite concentrate and value added graphite products from Focus Graphite's proposed Lac Knife, Quebec mining and processing facility.
The specific terms of the agreement, including pricing and renewal rights, are confidential for competitive reasons.
"On behalf of Focus Graphite we are extremely pleased to have completed our first offtake agreement. This agreement holds the potential for Lac Knife's future development," said Don Baxter, Focus Graphite's President and Chief Operating Officer.
"Not only is this offtake agreement the first of its kind in the graphite industry, it is significant in the fact that it encompasses the wide spectrum of Lac Knife's offerings in pioneering the sale of small flake to extra large flake and value added technology products," Mr. Baxter said.
"This agreement underscores our long-held commercial objective of competing in the China market," he added.
This agreement was completed in the absence of a Feasibility Study (currently underway) and there is no certainty the above objectives will be met.
