Australia’s Triton Gold plans to prospect for graphite in Mozambique

21 June 2012

Australian company Triton Gold has signed a binding term sheet for the acquisition of five graphite prospecting requests in the Mozambican province of Cabo Delgado, the company said in a statement issued Wednesday.

Under the terms of the sheet Triton Gold will have to pay 1.5 million Australian dollars, in direct cash payments to Grafex, which owns the five prospecting requests.

Triton Gold will also give Grafex Limitada 15 million of its own shares and 10 million non-listed options that may be exercised within three years at a cost of 0.05 Australian dollars per share.

The Australian company will also carry out a placement of 5 million shares at 0.10 Australian dollars per share in order to raise 500,000 Australian dollars to be used for prospecting in order better to understand the potential of the land covered by the five requests.

Cabo Delgado province has been in the mining sector news recently due to positive results obtained by Syrah Resources at the Balama, where high quality graphite was found, specifically with a 94 percent carbon content.

Other known graphite deposits in the region include the Ancuabe mine, the Balama Montepuez area and some areas to the south of Ancuabe, but north of the Lúrio River.

World graphite prices have been on the rise, from US$600 per ton in 2004 to US$3,000 per ton in 2011, as demand exceeds supply. (macauhub)