EcoGraf (ASX: $EGR) signs 5-year gold exploration farm-in agreement with AngloGold Ashanti

EcoGraf Limited (ASX: $EGR) has signed a binding agreement with AngloGold Ashanti Holdings plc (AngloGold) to enter into a US$9.0m (A$13.5m) 5-year farm-in agreement for the exploration of gold at EcoGraf's wholly owned subsidiary Innogy Limited's Golden Eagle gold project in the Lake Victoria Goldfields of Tanzania.

EcoGraf Managing Director's Commentary on the Agreement

The Golden Eagle farm-in agreement with AngloGold Ashanti demonstrates the strong technical quality of the Innogy assets and is a further vote of confidence in the mining industry of Tanzania. We look forward to AngloGold's expertise in gold exploration being applied to Golden Eagle, as it hunts for another Tier-1 gold deposit to complement its existing Geita operation in Tanzania. This agreement is a great result from our technical team, providing a pathway to realise value for our shareholders from EcoGraf's non-core mineral assets. It provides upside exposure to the rising gold price for our shareholders, while the Company focuses on the development of its battery anode materials business for the lithium-ion battery market.

Summary of EcoGraf (ASX: $EGR) and AngloGold Ashanti's Farm-in Agreement

EcoGraf Limited (ASX: $EGR) has entered into a US$9.0m (A$13.5m) 5-year farm-in agreement with AngloGold Ashanti Holdings plc for the exploration of gold at the Golden Eagle gold project in Tanzania. The project, located in the Singida and Manyara regions, holds significant potential to discover world-class multi-million-ounce gold deposits. AngloGold will make a US$100k payment to Innogy on the Commencement Date, and has the right to earn 70% of the project by spending US$8.9m over five years, with EcoGraf retaining 30%. After earning a 70% interest, EcoGraf has the option to contribute to maintain its 30% or dilute to a gross revenue royalty on AngloGold taking the project through to production. The Golden Eagle Project forms part of AngloGold's new exploration portfolio in Tanzania as it restarts exploration in the country. Aside from the Golden Eagle Project, EcoGraf holds other gold, nickel, and lithium exploration assets in Tanzania and is engaging with corporate groups that have expressed an interest in these assets.