Sovereign Metals (ASX:SVM) signed a non-binding memorandum of understanding (MOU) with commodity trader and merchant Traxys North America for the marketing and sale of graphite products from the Kasiya project in Malawi, according to a Tuesday filing with the Australian bourse.

The MOU, which contemplates a supply agreement to cover five to ten years of production from the project, is targeting around 40,000 tonnes per year of graphite concentrate for stage one and up to 80,000 tonnes per year thereafter, the filing said.

Sovereign Metals shares rose 2% in morning trade on Tuesday.