Sarytogan Graphite Ltd (ASX:SGA) has signed a land access agreement with local stakeholders to secure unimpeded access to the flagship Sarytogan Graphite Project, an important step in advancing the tenure toward a mining licence and development.
SGA retains the right to withdraw from the agreement at any time, which covers a US$10,000 pre-payment and a lump sum compensation payment of US$240,000 once the mining licence has been granted.
In return, the local landowner will “do all things necessary to allow the grant of the mining licence” including surrendering the part of their land plot coincident with the proposed mining lease.
Clears the way for mining approvals
“This land access agreement is a significant step forward for development of the Sarytogan Graphite Deposit,” Sarytogan Graphite managing director Sean Gregory said.
“It clears the path to apply for a mining licence and future mining approvals.
“Sarytogan is committed to continuing to foster our relationships with the communities in which we operate for mutual benefit.”
SGA most recently raised some $5 million to develop the project, which will go to a pre-feasibility study as well as additional exploration and working capital.
The company also recently upgraded more than half of the project’s mineral resource estimate into the higher surety indicated classification, now sitting at a total of 229 million tonnes at 38.9% total graphitic carbon (TGC) for 66 million tonnes of graphite with an indicated portion of 126 million tonnes at 28.8% TGC.