Amigo Resources and the State Mining Corporation of Tanzania (STAMICO) have signed a memorandum of understanding (MoU) to examine the feasibility of a graphite tailings recovery and beneficiation project in Tanzania.
The agreement establishes a framework for both parties to collaborate on technical, commercial and regulatory assessments of graphite-bearing material within various project areas.
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Under the terms of the MoU, Amigo will lead and finance a detailed technical due diligence programme.
This process will include sampling, metallurgical tests and independent laboratory analysis aimed at determining the potential for extracting saleable graphite from material previously regarded as having limited value.
STAMICO will work with Tanzanian Government bodies and local artisanal mining communities, and facilitate access to project sites and relevant non-confidential data.
The MoU provides Amigo with exclusivity on third-party negotiations regarding the project for the duration of the agreement, allowing time for both parties to negotiate definitive long-form contracts if the feasibility study yields satisfactory results.
While the MoU is non-binding in terms of future project development, legally binding provisions cover confidentiality, costs, dispute resolution, exclusivity, governing law and term.
Amigo will retain exclusive ownership of its existing intellectual property including proprietary methodologies throughout the assessment process.
Both parties intend to proceed to structured due diligence, which will involve technical and commercial evaluation as well as mineralogical testing.
If successful, Amigo and STAMICO aim to negotiate a definitive agreement to develop the graphite tailings project.
Amigo executive chair Craig Ransley said: “This MoU gives Amigo and STAMICO the opportunity to determine whether graphite-bearing material that is currently unused or regarded as waste can be transformed into a valuable mineral product.
“The potential significance of the project extends beyond graphite recovery; if successful, it could improve the productive use and management of historical mining residues while creating an additional income opportunity for eligible local miners and material owners.”
