Amigo Resources PLC (LON: AMGO) has signed a Memorandum of Understanding with Tanzania’s state-owned mining company STAMICO to evaluate a potentially significant graphite tailings recovery and beneficiation project.
The agreement establishes a framework to assess whether graphite-bearing tailings, dumps and stockpiles can be processed into a commercially saleable product, while supporting resource efficiency and local value addition in Tanzania.
Principal Terms of the MOU
The MOU records the parties’ present intentions to determine the feasibility of the Project and establishes a pathway toward binding long-form contracts:
· Responsibilities: Amigo is responsible for directing technical due diligence. STAMICO will coordinate engagement with relevant authorities and facilitate physical access to the Project area and non-confidential technical data.
· Intellectual Property: Amigo retains sole and exclusive ownership of its pre-existing intellectual property, including proprietary methodologies.
· Legal Status: While the broader MOU is non-binding regarding the ultimate development of the Project, specific provisions relating to exclusivity, confidentiality, costs, term, governing law, and dispute resolution are legally binding.
Under the MOU, Amigo will lead and fund the technical due-diligence programme, including representative sampling, mineralogical work, metallurgical testing and independent laboratory analysis.
STAMICO will support engagement with Tanzanian authorities, local artisanal mining communities and other stakeholders, while facilitating access to the project areas and relevant non-confidential technical information.
Importantly, STAMICO has granted exclusivity to Amigo for third-party discussions during the term of the MOU, giving the parties time to assess the opportunity and negotiate definitive agreements if the technical and commercial results are satisfactory.
The broader MOU is non-binding regarding final project development, although provisions covering exclusivity, confidentiality, costs and dispute resolution are legally binding.
Executive Chair Craig Ransley said the immediate focus will be on determining the quantity, grade, mineralogy and processing characteristics of the available graphite-bearing material before deciding whether the project can progress to a binding development agreement.
