Battery Minerals Limited (ASX: BAT) has been granted a mining license by the Mozambique Government for its Balama Central graphite project, covering the production of 50,000tpa of graphite concentrate.
The news comes at the company prepares to sell its Mozambique graphite assets including Balama Central and Montepuez to LSE-listed Tirupati Graphite for $12.5 million in cash and shares, in a deal which will see BAT become Tirupati’s second-largest shareholder.
“We look forward to completing our sale agreement for our Mozambican graphite assets with Tirupati Graphite”
Speaking on the news, Battery Minerals Chairman David Flanagan said: “This is another important milestone for the Balama Central graphite project for production of graphite concentrate. We look forward to completing our sale agreement for our Mozambican graphite assets with Tirupati Graphite announced in August 2021 in the coming months.”
The deal with Tirupati will see the assets operated by a fully integrated, revenue generating, specialist graphite producer whose founders and management bring ‘significant experience’ in the graphite industry.
Tirupati operates a speciality graphite manufacturing and graphene and advanced materials development businesses in India, along with primary mining and processing projects in Madagascar which have achieved 50% operating margins.