25,000 TPA GRAPHITE SALES AGREEMENT SIGNED WITH MAJOR EUROPEAN GROUP
• Sales Agreement signed with European group World Plastik ve Petrokimya Sanayi ve Ticaret A.S, subsidiary of World Group
• Agreement for 15,000tpa of Super Jumbo flake graphite and 10,000tpa of Jumbo Flake graphite
• Term of Agreement is initially 3 years from first delivery with further details remaining commercial in confidence
• World Group is a globally recognised developer, investor and co-owner of power plants, infrastructure projects and oil terminals including crude oil, LPG and Petrochemical products along with trading of raw materials, chemicals and grains Magnis Resources Limited (“Magnis” or the “Company”) (ASX:MNS) is pleased to announce the securing of a Sales Agreement for the supply of flake graphite with World Plastik ve Petrokimya Sanayi ve Ticaret, a division of the World Group (“World Group”). Sales Agreement The Agreement signed for 25,000 tonnes per annum of flake graphite consisting of 15,000 tonnes per annum of Super Jumbo (+500 microns) at 97-99%TGC purity and 10,000 tonnes per annum of Jumbo (+300 microns) at a purity of 97.5% - 99.5%TGC. Under the agreement, Magnis can source the graphite from its Nachu project, as well as from other mines that produce graphite based on the above specifications. Pricing is fixed over the initial 3-year term and is commercial in confidence with first delivery expected in 2019. Overall pricing exceeds the forecasts used in the Magnis Bankable Feasibility Study released via an announcement to the ASX on 31 March 2016.
About the World Group World Group is a major player in the field of Energy, International Commodity Trade, E.P.C, financing solutions and infrastructure projects. It has headquarters in Istanbul with finance offices in Geneva as well as representative offices in the regions of the Middle East and North African, Commonwealth Independent States and Asia. ASX/MEDIA RELEASE The majority of its business activity is physical trading of oil, gas, petrochemical and polymer Products. In addition to trading of commodities through its fully owned and stake holding subsidiary companies, World Group is also a developer, investor and co-owner of power plants, energy and infrastructure projects and oil and gas product storage terminals. World group is a member of the Energy Council of Foreign Investors for The Republic of Turkey, a group consisting of government officials, industry, and other stakeholders with a view to support the efforts of both international and national market players for new endeavours in the developing Turkish energy market.
Further information on the Word Group can be found at www.worldkimya.com
World Group Director Murat Turel commented: “We look forward to a long-term relationship with Magnis as we work together to meet our customer’s needs.”
Magnis’ Chairman Frank Poullas commented: “Today’s announcement is significant for the Company and is one of the very few sales agreements in the marketplace with fixed pricing. It highlights the substantial demand that exists for high purity super jumbo and jumbo flake. The agreement has the optionality to source product from our Nachu project, as well as from other graphite mines that can deliver Super Jumbo and Jumbo flake graphite.”
MNS Price at posting:
45.0¢ Sentiment: Buy Disclosure: Held
(20min delay)
