Triton Minerals has secured funding of US$12 million from the sale of shares to a group of Hong Kong investors, which it plans to invest in graphite exploration in northern Mozambique, the Australian company said Monday.
One of the investors is associated to Chinese group Shenzhen Zhongjin Qianhai, with which Triton Minerals recently signed a letter of intent with a view to obtaining financing of US$200 million for the development of the project, the company said in a statement sent to Macauhub in Maputo.
The operation involved the sale of approximately 34.3 million shares at a unit price of US$0.35, for a total of US$12 million, and the transaction must be carried out in one instalment by the beginning of next week, the statement said.
With the amount raised, the Australian mining company is planning to complete a definitive feasibility study for the Monte Nicanda project, located on the Balama Norte concession, which Triton Minerals has said contains the world’s largest known graphite reserve.
Furthermore, the company intends to use part of the money to start construction of infrastructure such as access roads and settlement for project’s operational structure and also plans to launch an initial drilling program in Ancuabe, another of the three concessions it has in the province of Cabo Delgado.
After obtaining financing of US$20 million in January from Long State Investments Ltd, headquartered in Hong Kong, this is the second deal Triton Minerals has done with investors from this special administrative region of China.
Besides the Qianhai Shenzhen Zhongjin group, headquartered in Shenzhen City, Guangdong Province, the Australian company entered into an agreement with another Chinese company, the Yichang Xincheng Graphite Co. (YXGC), and now holds the exclusive rights to supply graphite to Malawi, Madagascar and Tanzania, and Mozambique.
Altogether and since the beginning of the year, Triton Minerals has obtained funding from investors in China amounting to US$232 million and its graphite sales contracts are worth an expected US$3.5 billion over the next 30 years.
Triton Minerals has an 80-percent stake in the three projects it manages in Mozambique – Ancuabe, Balama Norte and Balama Sul – and the remaining 20 percent if owned by Grafex Ltd. (macauhub/CN/MZ)