Signs 3 Year Graphite Sales Contract
Perth, July 21, 2015 AEST (ABN Newswire) - Valence Industries Ltd (
ASX:VXL) is pleased to announce that it has signed a binding three year multi-product graphite sales contract with a new customer.
Highlights:
- Multi-year, multi-product Sales Contract signed with major customer
- Flake graphite sales in excess of US$50M over three years
- Key step in meeting conditions for initial syndicated finance facility
The contract with this Asia Pacific based customer is significant as it provides for sales in excess of US$50 million (A$67.6M) over the next three years. This major customer will be purchasing graphite for use in industries including Aluminium, Steel, Metallurgical, Chemical, Refractory, Ceramics, Construction, Plastics and Rubber and Expandable Graphite Products.
The new sales contract focuses on the Company's coarser flake graphite production which matches known production capability and mine signature. The benchmark pricing under the sales contract exceeds Valence Industries' previously announced weighted average price of US$1,335 per tonne and includes take or pay provisions on the volumes ordered. This sales contract is in addition to the Heads of Agreement and adds to the multiple existing sales contracts entered into by Valence Industries.
The delivery profile in the contract is timed to match production from the Company's existing Uley GraphiteTM facilities. This customer will be supplied initially from the existing 14,000 tpa plant and then from the expanded production facilities.
Valence Industries is ramping up the level of current production from its existing facilities to reach full production capacity by the end of September 2015. Shipments will progressively increase over that period in line with customer orders as production rates increase and volumes for specific orders (in purity and sizing) are produced.
About Valence Industries Ltd
Valence Industries Limited (ASX:VXL) is an industrial manufacturing company producing high grade flake graphite products for distribution and sale to global markets. Valence Industries owns established processing facilities and infrastructure to manufacture a wide range of graphite product lines for multiple applications and multiple industries. Valence Industries produces and sells its graphite products from its Uley Graphite facilities in regional South Australia for delivery to diversified markets for graphite in the Asia Pacific, Europe and North America. Visit Valence Industries
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