Saint Jean Carbon (SJL) has provided an update on its offtake agreement with junior mining company Ameca.
In late September of this year, Saint Jean Carbon entered into an offtake agreement with Ameca. Under the terms of the agreement, the company committed to buying a minimum of 7,500 tonnes of graphite from Ameca every year.
The prices for the graphite were to be negotiated every six months, based on market rates.
Ameca currently controls development of graphite in Sri Lanka, and had planned to be in production at 15,000 tonnes a year by 2021. However, this deadline has now been pushed back, meaning that production in Sri Lanka will be delayed until late 2021 or early 2022.
Saint Jean plans to pre-sell at least 7,500 tonnes of the graphite to a third party, without ever taking physical possession of the material. The company and Ameca are now in the process of agreeing on a formula for sharing profits on all sales.
The intent now is to sell the entire 10,000 tonnes of graphite under the agreement with Ameca.
In other news, Saint Jean Carbon has announced the resignation of its Chief Financial Officer and Corporate Secretary, Anna Lentz. Anna was first appointed to these roles on April 30, 2018.
The company’s Chairman and President, Dr William Pfaffenberger, has been appointed to the role of Interim CFO. He will fill this position temporarily, while the company looks for a successor to replace Anna after her departure.
Anna will continue to provide day-to-day accounting support until her replacement is chosen.
Saint Jean Carbon (SJL) last traded on October 28 for 2.5 cents per share.