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Triton Minerals raising A$5.2M for graphite projects in Mozambique

Triton Minerals Ltd. on March 16 announced plans to raise A$5.2 million through a share placement and a 1-for-15 entitlement issue.

The ASX-listed company has received firm commitments to place 12.5 million new fully paid ordinary shares at 8 Australian cents each to institutional and professional investors to raise an initial A$1 million.

Meanwhile, the company is offering 52,158,212 shares in the underwritten pro rata nonrenounceable entitlement issue to raise a further A$4.2 million. Eligible shareholders on record as of March 28 will be able to participate in the entitlement offer.

The offer will open March 29 and expire April 18.

The capital raising follows the company's recent acquisition of Grafex Limitada and its graphite assets in Mozambique after entering into an agreement to acquire Gregory James Sheffield's 20% interest in the company for US$1.5 million.

"The capital raising bolsters the company's balance sheet following the recent Grafex acquisition and restructure of the joint venture, and provides working capital ahead of the anticipated ramp-up of development activities at Ancuabe and Nicanda Hill [part of the company's Balama graphite property]," Triton Managing Director Peter Canterbury said.

Triton is progressing multiple development initiatives at Ancuabe graphite property, including off-take agreements, marketing, engineering, procurement and construction contractor engagement, approvals and project finance.

"Through this capital raising, Triton will be in a better position to progress these objectives and negotiate final terms without working capital restraints," Canterbury said.

A December 2017 definitive feasibility study estimated that the Ancuabe project requires preproduction CapEx of US$99.4 million for a mine that will produce about 60,000 tonnes per annum of graphite concentrate over the evaluation period of 27 years.

The study estimates a pretax net present value of US$298 million, an internal rate of return 36.8% and near-term payback of 3.8 years.

Triton Minerals anticipates a final investment decision on Ancuabe in the second quarter.

The raised funds will be used to accelerate the review of the vanadium development potential of the Nicanda Hill graphite-vanadium project.