Triton Minerals boosts stake in Mozambique graphite projects to 100%

Triton Minerals (ASX: TON) has entered a deal to boost its stake in its Mozambique graphite projects to 100%, which the company claims will assist with securing mining approvals, offtake partners and finance.

The company inked a deal with Gregory Sheffield and Grafex to purchase the remaining 20% interest in Grafex for US$1.5 million, giving Triton full ownership of the company that holds its flagship Ancuabe project, as well as its nearby Balama North and Balama South projects.

“We are pleased to announce the consolidation of the ownership of Grafex and its graphite projects in Mozambique,” Triton managing director Peter Canterbury said.

Mr Canterbury added full ownership would help the company secure its remaining approvals in Mozambique, as well as offtake and financing negotiations.

He was hopeful the company would be able to make an investment decision in the next quarter.

The agreement is due to be finalised in a month’s time and remains subject to various regulatory approvals.

China offtake deal

Earlier this month, Triton locked-in a five-year offtake agreement for its Ancuabe ore with China-based Qingdao Tianshengda Graphite.

The initial agreement, which Triton expects to be made binding next month, involves Qingdao purchasing up to 16,000 tonnes per annum of Ancuabe graphite.

Ancuabe has a contained graphite resource of 3.04 million tonnes, which underpins a 25 year-plus operation.

A definitive feasibility on Ancuabe revealed 60,000tpa of graphite concentrate could be produced over 27-years.

Once operational, the study indicated Triton could achieve a post-tax cash flow of US$753 million based on a US$1,435 per tonne graphite price.

Situated about 90km from the country’s deep water port, Ancuabe is also near to existing road and rail infrastructure.

If Triton is able to make an investment decision next quarter, the company plans to mobilise a construction workforce to the site by the end of September.

By midday, shares in Triton has lifted more than 2% to A$0.096.