Bass Metals (ASX:BSM) which is just one of three publicly listed graphite producers in the world, has inked an agreement to sell 50 per cent of its stage 1 Graphmada Graphite production.
The three-year deal with a European company, Possehl, involves the company buying 3,000 tonnes per annum of its 6,000 tonne annual production.
Bass says this coupled with its ramp up in production, will see it become a profitable producer, with stage 2 production to grow to 20,000 tonnes per annum.
The company that it signed the sales agreement with generates €350 million per year and has been operational for 100 years.
Shares in Bass Metals (ASX:BSM) are trading 4.17 per cent higher to 1.25 cents.