ASX-listed Triton Minerals has inked an MOU with Chinese graphite company Qingdao Jinhui Graphite Co. in relation to the development of the Ancuabe graphite project in Mozambique.
Mozambique – Triton and Jinhui will now commence technical, legal and commercial due diligence and continue negotiations with a view to executing a binding agreement within six months.
As envisaged in the MoU, the binding agreement would include:
- A direct project level investment of up to 10% in the Ancuabe graphite project
- Financing support through concessional debt and/or equipment financing facilities
- Offtake of up to 15 000 tpa of graphite concentrate
- Technical collaboration for value-added processing for supply of Ancuabe graphite into the Chinese flame retardant, refractories and battery markets.
“This MOU with Jinhui is a significant endorsement of the Ancuabe project. It is further evidence that Chinese domestic producers are now actively looking to East Africa to expand and diversify their high purity and large flake supply chains in preparation for the significant growth anticipated in the battery and flame-retardant materials markets. This MOU also is complementary to our financing discussions in China which are progressing well,” says Triton MD Peter Canterbury.
The Mozambique Ministry of Mines (INAMI) has recommended to the Minister of Mines that the Ancuabe mining concession be granted for an initial period of 25 years (renewable for subsequent periods of 25 years). The mining concession is now with the Minister of Mines for formal signature and the Mining Cadastre of Mozambique has been updated to a grant date of 27 February 2019 with the nomenclature ‘assignment pending’. Management continue to do all that is possible to secure the Minister’s signature. They have been assured that all remains in order.