http://www.miningweekly.com/article/stratmin-signs-offtake-deal-f...

http://www.miningweekly.com/article/stratmin-signs-offtake-deal-for-madagascar-graphite-2014-10-21

Not trying to steal your thunder Jonno - I like this one better - but I'm biased.... Seriously - good link. Your timing and putting it on the radar was perfect (not in relation to the below comments - other things where the discussion is in need of continuing).

"In terms of the agreement, StratMin and the buyer would, in advance and on a rolling basis, determine pricing for the six months ahead. This mechanism was expected to enable both parties to reset prices to reflect any changes in the open market.
The parties would have four months from the pricing reset date to agree the pricing for the succeeding six months and either party could terminate the agreement within six months following the pricing reset date.
The offtake deal had set out the first 12 months' volumes, grades and fraction characteristics, which would be subject to a yearly review thereafter."

Hands down, that's a pretty smart arrangement. It smokes my MFC clause - well it is a MFC clause in a way, in that it's a volume discount clause that can't be abused by the customer. And if they abuse it, Stratos just terminates and is only exposed for 6 months. Very clever. Wonder if VXL's collar pricing clause will operate similarly.

"Meanwhile, the merchant had also agreed to provide StratMin with technical assistance through sharing graphite marketing information, as well as its own processing knowledge. "Over time, the board expects this partnership to improve StratMin's ability to produce and market a world-class graphite product, which should command a premium price,” StratMin stated."

There's your open IP sharing once you build a little bit of 'good faith' love into these arrangements. So partnering doesn't have to cost you money. And the merchant - well wouldn't you love to be a fly on the wall in his/her office. I take it all these samples pumped out by upcoming wannabe producers land on his desk - right next to the samples from established manufacturers. Assume a merchant would have a good grasp of synthetics too. Wonder what else the merchant sees?

And ohhh TJ - Who's your Dadi? I may have to wash my mouth out with soap now!