The Magnis Energy Technologies Ltd (ASX: MNS) share price is struggling on Thursday. This comes after the company announced a business update on its Nachu Graphite Project.
At the time of writing, the battery technology company's shares are down 2.75% to 53 cents.
What's up with Magnis shares today?
The Magnis share price is currently in reverse as investors take profit following a 19.78% gain yesterday.
In today's announcement, Magnis provided an update on the recent activities at the Nachu Graphite Project.
During the past few months, the company has been ramping up its plans to build an eco-village. This is part of the resettlement package for the 56 families affected by the development of Nachu.
Clearing works are nearing completion with roadworks having commenced recently. It is expected that during the first quarter of 2022 that construction of the village will begin.
An option for powering the village is being assessed whereby the company could potentially provide its solar and battery storage solution. This would be used by lithium-ion batteries produced from iM3NY's battery plant based in Endicott, New York.
In addition, Magnis revealed that recent water bore drilling delivered successful results, with several holes showing significant water flow. The water volumes achieved are considered to be suitable for the construction phase.
Fencing off Nachu will begin also in the first quarter of 2022, with scheduled completion within 3 months of starting.
Lastly, Magnis highlighted the binding offtake agreement signed with physical commodity trader and merchant, Traxys this month.
This will see the future supply of natural graphite concentrate from the Nachu Graphite Project.
Under the terms, the delivery of the product is valid for a period of 6 years from the commencement date. It is expected that orders will begin to be fulfilled sometime in the second half of 2024.
The sales volume must be a minimum of 600,000 tonnes of graphite across all flake sizes over the contract period.
The pricing of the product will be set at the current market rate at the time of the delivery.
More on the Nachu Graphite Project.
The project is located approximately 220 kilometres away from the Tanzanian port of Mtwara. Due to its large size, the project has significant potential to be a world-class producer of graphite. The area has an orebody with very low variation in lithology and mineralisation, and in low-cost operational model.
Magnis has a proprietary process to produce a high quality, high purity graphite concentrate ore from the Nachu graphite feedstock.
The African graphite project is estimated to contain a combined measured, indicated and inferred resources totalling 174Mt grading 5.4% graphitic carbon (Cg) at 3% Cg cut-off grade.
About the Magnis share price
In the past 12 months, Magnis shares have shot up around 170% from continued positive investor sentiment. The company's share price charged higher in late October following an update on its New York Lithium-ion Battery Plant.
Magnis commands a market capitalisation of around $518.63 million, with roughly 978.56 million shares on its registry.
