Chinese state-owned company Jinan Hi-Tech has proposed an investment of 19.5 million Australian dollars in Triton Minerals, which is involved in the exploration of graphite deposits in Ancuabe, northern Mozambique, according to a market statement.
The project, which is subject to regulatory approvals from Australia and China, will be carried out in two phases, at the end of which Jinan Hi-Tech will control 34.10% of Triton Minerals, according to a press release issued in Australia.
In the first phase, Jinan Hi-Tech will acquire the 19.3% stake of also Chinese Shandong Tianye Mining in Triton Minerals at the unit price per share of 6.2 cents or a total of 11 million Australian dollars.
The second phase will consist of an issue reserved for Jinan Hi-Tech of 207.3 million shares of Triton Minerals at a unit price per share of 4.1 cents or a total of 8.5 million Australian dollars.
This capital injection will allow Triton Minerals to start the development of the Mozambique project, with the contractor who will be working on the project, and the engineering, component procurement and construction (EPC) projects.
Triton Minerals signed an EPC contract with Chinese company MCC International Incorporation in September 2018 to build the facilities and infrastructure of Ancuabe’s graphite exploration project in Mozambique.
The project contains estimated graphite deposits of 3.04 million tonnes, with the definitive economic feasibility study determining that the concession can produce 60,000 tons of graphite concentrate per year over a 27-year period. (Macauhub)