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Triton Minerals Sells 70% Stake in Graphite Projects for $17M

Triton Minerals Sells 70% Stake in Graphite Projects for $17M

Triton Minerals has agreed to sell 70% of its graphite assets in Mozambique to a subsidiary of China’s Shandong Yulong Gold for an estimated 1 billion meticals (17 million dollars), the news portal Small Caps Australiareported on Monday 2 July.

The organisation explains that the transaction will include all of the mining company’s interests in the emblematic Ancuabe project, as well as the Nicanda Hill, Nicanda West and Cobra Plains leases. The funds from the sale will enable Triton Minerals to make value-added acquisitions with the aim of diversifying its portfolio.
The funds from the sale will enable the mining company to make value-added acquisitions with the aim of diversifying its portfolio.

Triton Minerals will initially retain a 30 per cent joint venture (JV) interest in the assets, giving it the opportunity to co-develop and operate the projects and maintain continued exposure to the graphite market.

The mining company’s CEO, Andrew Frazer, said that the divestment would be the “quickest and most logical route to Ancuabe production”.

“We believe this transaction is the best way to generate value for our shareholders in a timely manner, given Shandong Yulong’s size, balance sheet and desire to develop and operate these graphite assets,” he said, emphasising: “we look forward to working with Shandong in executing the transaction and moving forward as a partner.”

Graphite extraction

Phased payments
Under the terms of the investment, Shandong Yulong – which, together with its associates, holds almost 36% of the voting power in Triton Minerals – will pay the mining company a cash consideration of 17 million dollars in three instalments.
The first instalment of 161 million meticals (2.55 million dollars) will be made within 15 days of the agreement and a further 376 million meticals (5.95 million dollars) as soon as the pre-established conditions have been met, including the establishment of the Mozambique JV. The final instalment of 537.2 million meticals (8.5 million dollars) will be paid in February 2025.

Ancuabe DFS
A 2017 definitive feasibility study (DFS) for the Ancuabe project confirmed that it is a high-quality, long-life, high-margin graphite asset for Triton Minerals.

See Also

An initial ore reserve of 24.9 million tonnes with 6.2% total graphitic carbon (TGC) supported the study’s evaluation period of 27 years with a production capacity of 60,000 tpa of graphite concentrate.

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