Twitter Update!!! #TG #VeinGraphite #Aukam Toronto, ON. February 15, 2022, Gratomic Inc. (“Gratomic”, “GRAT,” or the “Company”) (TSXV:GRAT) (OTCQX:CBULF) (FSE:CB82) announces that it has signed a Memorandum of Understanding (“MOU”) with Millennium Metals LTD (“TM2”) and an undisclosed 3rd party (the “Buyer”), to supply graphite over 60 consecutive months, to begin upon commencement of commercial production at its Aukam Graphite Project in Namibia. Gratomic and TM2 forged a strategic partnership with the intention of being the first to industrialize graphite as a commodity (as mentioned in the press release dated June 30, 2021), and signed an indicative term sheet on February 8, 2022 (see press release here) in order to set the groundwork for this MOU.
TM2 is the world’s first spot market where direct investment in technology metals is possible. It is quickly becoming the one-stop-shop for electric vehicle (EV) battery manufacturers and OEMs. The metals and minerals available on the TM2 platform are essential to EV batteries, aerospace, semiconductors, and many additional high-tech industries. TM2’s innovative approach to commodities has created a global community within the electric vehicle space. Learn more about TM2 here.
The Parties have agreed to enter into a long form agreement within 6 months where Gratomic will commit to supplying 600 tons per month of graphite SG16 Uncoated or other grade in the initial 3 months of supply, and 1,200 tons per month of graphite SG16 Coated or Uncoated or other grade after the initial 3-month period, year over year for 60 consecutive months from the date that the Company’s Aukam Graphite Plant officially enters commercial production. Commerical production is defined as an output of greater than 51% of total production, which is estimated for Q3 of 2022.
The prices should be discounted by 5% on FOB terms. As an indication, Gratomic and TM2 Indicative Term Sheet signed on February 8, 2022, defined a fixed price of $2,700 USD per ton for graphite grade SG16 uncoated, and $8,000 USD per ton for graphite grade SG16 coated.
A provisional payment of 70% in advance will be made quarterly to Gratomic for the upcoming 3-month delivery period based on planned production and prices on the date of payment. Final payment will be made 30 days after an inspection in a bonded warehouse. Payments will be made directly by the Buyer to Gratomic, and a shared profit contract will need to be established with TM2.