Elate Holdings (HKG:0076) said it has entered into a repayment agreement with Aspect Group (AGL) after the latter failed to pay $296.4 million for graphite ore purchased from the company, according to a Thursday Hong Kong bourse filing.

Shares of the firm were up nearly 8% in Friday morning trade.

AGL had agreed in December 2024 to buy 32.86 million tons of graphite ore from Elate, with full payment due by Sept. 30 this year.

The firm missed the deadline amid political unrest in Madagascar, which disrupted local operations.

Elate said it rejected AGL's proposals to defer payment until December 2026 or return unused ore, citing instability in Madagascar that has hampered sales, logistics, and on-site security.

Instead, Elate has taken possession of all collateral previously held under its name, custody, and control as settlement.

Both sides have agreed to continue graphite trading "in a friendly and mutually beneficial manner," Elate said.