ASX-listed Bass Metals and downstream graphite processor Urbix Resources have signed a strategic memorandum of understanding (MoU) to identify the optimum joint venture (JV) structure and product mix with a view of establishing a production facility in Madagascar.

Bass’ large flake dominated deposit is suitable for a broad range of downstream applications, the mining company release said on Monday.

Bass and Urbix would delineate terms for establishing a JV facility in Madagascar capable of producing a purified high-value graphite product, which would use Urbix’s propriety technology and Bass’ graphmada large flake graphite.

Urbix’s proprietary advanced technology includes environment- and cost-conscious purification methods that were not reliant on environmentally unsustainable hydrofluoric acid treatments, Bass noted.

Urbix is currently engaged in building what will be one of the largest natural graphite purification facilities in North America. Upon completion, the 9 450 km2 facility at Falcon Airfield in Mesa, Arizona will have the capability of purifying up to 24 000 t/y.

The parties would aim to establish the JV in the next 180 days.