Graphite deal for Australian's African digs
Graphite exploration firm Triton Minerals has announced a major deal that will see $255 million invested into its operations in Mozambique.
Shenzen Quianhai Zhonglin Group (SQZG) – a Chinese equity and resources firm - has proposed a funding package of 50:50 debt to equity, with formal due diligence work to be completed no later than 30 June 2015.
Triton must provide graphite to SQZG with purity over 90 per cent and moisture of no more than one per cent, at a fixed price of US$875 per tonne.
The deal will see SQZG buy into the 200,000 tonnes of graphite Triton says it will produce over 10 years at the Nicanda Hill mine in Mozambique.
Triton managing director Brad Boyle said it was an outstanding achievement for the company.
“This letter of intent signifies an important step towards securing complete and comprehensive funding for the development of our flagship Nicanda Hill deposit,” he said.
“We are delighted and privileged to be associated with SQZG who are looking to align themselves with Triton as a long term strategic partner, a cornerstone investor, financier and off-take partner.”
SQZG managing director Chen Shaogang said Triton was a good fit.
“As a result of our detailed analysis of the graphite supply business we have identified Triton as the premier future developer and producer,” he said.
“Considering various aspects such as resource quality, technical expertise, rapid and effective project progression, board and management team determination and resolve, we view the Nicanda Hill deposit as a justifiably world class deposit and Triton as the industry leader.
“Triton holds a key asset in the graphite and vanadium world.”