Cheltenham-based advanced materials engineering group, Versarien have announced another step forward in their rapidly-expanding business ties in China.

In a statement to the London Stock Exchange, Versarien announced it had signed a term sheet with the Beijing Institute of Graphene Technology (BIGT) to develop its graphene-related business in China.

The term sheet was signed on Sunday in a public ceremony in Shenzen which was attended by rep-resentatives of BIGT, Versarien and the Chinese and UK Governments.

Both parties will now continue doing due diligence and before formal documentation is signed.

Neil Ricketts, CEO of Versarien said: "We are very pleased to have reached the term sheet stage in our discussions with Beijing Institute of Graphene Technology.

"This developing relationship potentially offers a huge opportunity for the Company and we look forward to progressing matters.

"During the last six months we have announced a number of MOUs with global manufacturers based in China, together with securing relationships with Chinese provincial government bodies.

"The plans with BIGT are complementary to these.

"We look forward to continuing detailed discussions with BIGT and making further announcements in due course as we look to rapidly scale the Versarien graphene business.

"We remain well funded and any capital would only be accepted to appropriately accelerate our growth plans."

The term sheet sets how BIGT can assist Verarien with the establishment of a subsidiary in China, to manufacture graphene and other 2D materials for sale in the People's Republic

It does not stop the company from entering into similar or other ventues in China and it remains the company's preference that any Chinese manufacturing base is in the city of Jinan, 400km south of Beijing.

The term sheet envisages BIGT will provide funding for the proposed subsidiary of up to 15 per cent, although the final amounts and whether the deal goes ahead will be subject to due diligence being completed.