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newGen Group increases PureGRAPH® forecast orders following highly successful field trials

  • newGen increases PureGRAPH® commitment to 4,800 kgs
  • Deed of Variation to Master Supply Agreement secures a new 36-month term with a structured growth path

 

First Graphene Limited (ASX:FGR; “First Graphene” or “the Company”) is pleased to announce that it has signed a Deed of Variation with newGen Group Pty Limited (“newGen”) for the supply of the PureGRAPH® product line for inclusion into the newGen ArmourGRAPH® protective products for the mining industry.

newGen have recently launched its ArmourGRAPH® protective mining wear liners and elastomeric coatings, based on successful trials whereby a six-fold extension of wear protection was documented.  Following successful trials, newGen have now moved to a production phase.

The Deed of Variation has been executed. It ensures a minimum phased commitment to FGR of 4,800 kgs of PureGRAPH® over 3 years.  The Deed of Variation terms are worth between $1,200,000 to $1,440,000 in revenue for FGR.

First Graphene Chief Executive Officer Michael Bell said that now is the most opportune time for newGen to commit to volumes and timelines for its uptake of the PureGRAPH® product line.

Mr Bell said: “Having successfully completed 62 weeks of in-field trials of the ArmourGRAPH® wear liners and having greater certainty of the forecasted uptake, now is the most opportune time to establish a deeper engagement and growth strategy with newGen.  We are excited to see our efforts solidify into production demand and look forward to working with newGen to be successful in the mining and protective liner space”.

newGen Group Managing Director Ben Walker said the increased commitment to FGR is an indication of demand in ArmourGRAPH® protective products growing over the next 3 years and beyond.

Mr Walker said: “Now that we have an understanding of the benefits of ArmourGRAPH® liners, having acceptance from the mining industry on its benefits and how these correlate into cost savings, we are excited to increase our overall commitment to FGR.  The market acceptance of ArmourGRAPH® is growing and we look forward to further product developments with FGR to extend the ArmourGRAPH® product line”.