Triton Minerals (ASX:TON) is set to raise up to $10m as its new management team pushes to supply the fast-growing EV market with battery-grade graphite materials from its Ancuabe Project in Mozambique.
The raise, comprising up to ~$9.79m from an entitlement offer plus a ~$320,000 options placement is supported by major shareholder Jigao, who the company says shares its ambition of developing Ancuabe into a key supplier of high-purity large flake graphite product.
“with a successful capital raising, Triton will be in a position to finally expedite the development of the Ancuabe Graphite Project”
Speaking on the news, Triton Executive Director Andrew Frazer said: “We now have the renewed support and commitment of all major stakeholders, and with a successful capital raising, Triton will be in a position to finally expedite the development of the Ancuabe Graphite Project in a very strong commodities market where there is an expectation of strong graphite demand and pricing for years to come.”
A definitive feasibility study on the project had confirmed Ancuabe as a ‘globally significant’ project with targeted output of 60ktpa over a 27-year mine life.
The company reports that engineering, procurement & construction (EPC) contractor MCC International is nearing completion of a review to identify the percentage of equipment finance available, in a bid to reduce debt funding requirements.
Chinese metal marketing and advisory firm Metal Challenge has been engaged by Triton to advance offtake agreements for Ancuabe graphite product, along with sourcing potential debt funding secured against offtake agreements. The company reports that Metal Challenge has played a key role in assisting throughout the project’s delayed development.
Triton already holds binding offtake agreements covering approximately 53% of Ancuabe’s anticipated annual production capacity, and although these are subject to review due to previous production and supply issues, the company notes that it is not aware of any intention to terminate by counterparties.