EcoGraf Epanko Graphite Project Secures German Offtake

EcoGraf Secures Preliminary Epanko Offtake Agreement

On August 12, EcoGraf executed a binding term sheet with a major German graphite trader, establishing a preliminary offtake agreement (Vorvertrag) under German law for natural flake graphite products from the EcoGraf Epanko Graphite Project in Tanzania. The arrangement is intended to provide a long-term sales channel for graphite produced at Epanko once operations commence. Under the term sheet, the trader would purchase 20,000 tonnes per annum (tpa) of natural flake graphite from the start of production. The agreement is therefore positioned as a significant commercial commitment ahead of the planned development and production ramp-up at the project.

Offtake Volumes to Double After Five Years

The planned agreement has a 10-year term and includes a substantial volume increase after the first five years. Annual purchases would rise from 20,000 tpa to 40,000 tpa following the initial five-year period. At that higher volume, the agreement would represent approximately 55% of Epanko's initial planned production capacity of 73,000 tpa. The structure gives EcoGraf a committed offtake pathway for a sizeable portion of planned output while establishing a longer-term relationship with a major German graphite trader. The volume step-up is also expected to become a material component of Epanko's planned sales profile once production reaches the relevant stage.

Frequently Asked Questions

What volume of graphite does the planned Epanko agreement cover?
The planned agreement covers 20,000 tonnes per annum of natural flake graphite when production begins, with the volume scheduled to increase to 40,000 tonnes per annum after the first five years. The agreement is planned to run for 10 years and would therefore provide a long-term sales arrangement for production from the Epanko Graphite Project. Once the higher purchase volume takes effect, the 40,000 tpa commitment would represent approximately 55% of Epanko's initial planned production capacity of 73,000 tpa.