TSX-V-listed South Star on Tuesday announced a binding sales agreement for the initial purchase of 100 t of graphite concentrate from the Santa Cruz mine, in Brazil.

The material will be shipped in five shipping containers, each holding 20 one-tonne super stacks.

South Star said a prominent US industrial graphite customer bought the graphite and that the client company expressed interest in negotiating regular purchases, pending positive test results for specific applications.

“We are excited to see our first purchase order finalised and the start of what we hope will be a great partnership with the US client,” said South Star CEO Richard Pearce.

Further, another major US graphite company had also tested and successfully qualified Santa Cruz graphite concentrate on behalf of its leading customer, qualifying the product for a green-energy application.

Santa Cruz, in Brazil’s Bahia state, is scheduled to complete construction of the Phase 1 plant in June.  Phase 1 will produce about 1 000 t a month.

Pearce said the next 18 months would be transformational for South Star, as the company transitioned from a developer to a producer.

“We look forward to working with great partners to bring our clients the first new graphite production in the Americas since 1996, as well as important tangible benefits to our team, local communities, stakeholders and shareholders.”