An agreement covering the sales and distribution of graphite in central Europe has been announced by Societe d’Exploration Miniere Mazarin (ME). The junior is developing a flake graphite property near Fermont, Que. (near the Quebec/Labrador border). Reserves of 8.1 million tonnes averaging about 17% graphitic carbon have been identified at the Lac Knife project. An open pit operation is envisaged.
Earlier this year, Mazarin was unsuccessful in negotiating an agreement with Princeton Mining (TSE) whereby Princeton (formerly Cassiar Mining) would have acquired a 50% interest in the graphite deposit.
Mazarin says it is currently negotiating with a number of other possible partners for development of the deposit which, pending completion of an agreement, could be in production late in 1991 or early in 1992.
Mazarin says a German firm (not identified) has been granted, for the next five years, the exclusive right to sell and distribute Mazarin’s graphite within Western and Eastern Europe, except the United Kingdom and Scandinavia.
The German company has agreed to purchase a minimum of 4,500 tonnes during the first year of commercial production from the deposit, with an option to purchase an additional 3,000 tonnes during the same year, Mazarin President Regis Labeaume said.
Minimum purchases will progress to 5,000 tonnes and 6,000 tonnes respectively during the second and third years of production, with the company maintaining the option of buying additional tonnage of 3,000 tonnes.
Similar agreements covering the U.K. and Scandinavia, and the U.S., Asia and southeast Asia, are expected in the near future, Labeaume said.
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