Amigo Resources (LSE:AMGO), the Africa-focused gold and critical minerals company, has entered a Memorandum of Understanding with the State Mining Corporation of Tanzania, known as STAMICO, to evaluate a graphite tailings recovery and beneficiation project.
The project targets historical graphite-bearing tailings, dumps and stockpiles currently regarded as having value, aiming to convert them into a saleable mineral product.
STAMICO has granted Amigo exclusivity against third-party discussions for the term of the MOU, giving both sides time to negotiate binding long-form agreements.
Amigo will direct and finance the technical due diligence, covering sampling, metallurgical testing and independent laboratory analysis, while STAMICO coordinates engagement with Tanzanian government institutions and local artisanal mining communities.
Amigo retains sole ownership of its pre-existing intellectual property and proprietary methodologies under the agreement.
The broader MOU is non-binding on the project's ultimate development, though provisions covering exclusivity, confidentiality, costs, term, governing law and dispute resolution are legally binding.
Craig Ransley, Amigo's Executive Chair, said the company will "focus on verifying the quantity, grade, mineralogy and metallurgical characteristics of the available material before determining whether the Project can progress to a definitive development agreement."
STAMICO's Managing Director, Dr Venance Mwasse, described the arrangement as "a good beginning" and "a stepping stone towards a wider scope of collaboration."
If due diligence proves satisfactory, the parties intend to negotiate exclusively toward a definitive agreement for the project's development.
News Intelligence what this means for the company
Amigo Resources has signed a non-binding MOU with Tanzania's state mining corporation STAMICO to evaluate a graphite tailings recovery project, with exclusivity granted during negotiation of a definitive agreement. The company will fund and direct technical due diligence—sampling, metallurgical testing, and lab analysis—while STAMICO engages with Tanzanian government and local communities. This represents a new commodity focus for the company, which has been executing gold and rare earth projects in Tanzania; graphite tailings recovery is a lower-risk entry point than greenfield exploration, targeting existing stockpiles rather than unmined deposits.
The MOU is non-binding on development and commits Amigo only to fund due diligence; progression depends on satisfactory metallurgical and grade verification. This adds a third commodity stream to the company's Tanzania portfolio but carries no capital commitment or revenue visibility until a definitive agreement is negotiated and signed.
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