Australia’s Evolution Energy Minerals said on Wednesday it had entered into a binding agreement with China-based BTR New Material Group to supply fine flake graphite from its Chilalo project in Tanzania.
The company will supply about 90% of the product from the project to BTR under the three-year agreement, which can be extended for another three years.
BTR, one of China’s largest lithium-ion battery materials maker, will also engage with Evolution on battery anode materials production.
BTR, in return, will acquire a 9.9% stake in Evolution for about A$4.9 million ($3.15 million) and support further financing of the Chilalo project.
“BTR and Evolution intend to work together to procure the finance for development of the Chilalo project,” the Australian explorer said in a statement.
The Chilalo project has potential for a multi-decade mine life as Evolution works to grow resources and reserves.
($1 = 1.5540 Australian dollars)
(By Rishav Chatterjee; Editing by Subhranshu Sahu)
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