ASX-listed Triton Minerals has announced the sale of a 70% interest in its Mozambique graphite assets to Chinese group Shandong Yulong Gold for A$17-million.
The transaction, announced on Tuesday, was deemed to be the fastest and most logical route to production for Triton’s flagship Ancuabe graphite project.
“Ultimately, we think this transaction is the best way to generate value for shareholders in a timely manner, given Shandong Yulong’s size, balance sheet and desire to develop and operate the Mozambique graphite assets,” said executive director Andrew Frazer.
Triton will initially retain a 30% joint venture interest in the graphite assets, which include the Ancuabe project, intellectual property and drill core results relating to the Nicanda Hill and Nicanda West projects, as well as interests in the Cobra Plains mining concession.
Triton will use the funds from the sale of the Mozambique assets to diversify its portfolio through acquisitions, said Frazer.
Ancuabe has a maiden Joint Ore Reserves Committee-compliant ore reserve of 24.9-million tonnes at 6.2% total graphitic carbon. A definitive feasibility study (DFS) on the deposits has confirmed the high quality, long life and high margin of the graphite project.
The DFS is based on the production of about 70 000 t/y of graphite concentrate over 27 years