- Armadale Capital said it had signed a memorandum of understanding for a proposed offtake agreement with China's Datong Resources.

The non-binding agreement was for the potential sale of graphite products to Datong from Armadale Capital's Mahenge Liandu project in Tanzania.

It envisaged the sale of 25,000 tonnes per annum of graphite concentrate produced at Mahenge Liandu and was for an initial five-year term, at a price to be agreed based on a Chinese benchmark.

Armadale Capital said work was continuing to finalise its definitive feasibility study and convert memorandum of understandings to binding offtake agreements.

'Today;s offtake MOU marks a highly significant point in the transition of our company from explorer to emerging producer and brings our offtake MOU portfolio to a point which exceeds the initial planned production from Mahenge Liandu,' director Nick Johansen said.

At 1:06pm: [LON:ACP] Armadale Capital PLC share price was +0.1p at 2.3p

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