The Financial Post featured Focus Graphite Inc. (TSXV:FMS) and its offtake agreement with an unnamed Chinese conglomerate for the future production from Lac Knife in Quebec.
As quoted in the article:
“This is the first off take agreement ever in the graphite industry. Having an off take agreement makes financing easier. Graphite is an industrial mineral and to build a mine you need an off take.” Said Baxter. Unlike precious metals or base metals where there is a world wide commodity market, graphite tends to be sold directly to end users through brokers. However, the commitment to build a mine requires a degree of certainty which brokered deals simply cannot provide.”