Triton Minerals (ASX:TON) re-commits to developing Ancuabe project in December quarter

• Triton Minerals (TON) over the December quarter recommitted to developing its Ancuabe graphite project in Mozambique
• The company plans to update a 2017 definitive feasibility study (DFS) while also gaining other approvals for the project
• The 2017 study recognised the project as a “globally significant” graphite development project, with returns of US$298 million (A$423 million), over a 27-year life and a payback period of 3.7 years
• During the quarter, Triton received further granted approvals for a cornerstone investment of $5 million from Shanghai-listed Shandong Yulong
• Shares in Triton were last trading at 3.7 cents at 3:13 pm AEDT

Triton Minerals (TON) over the December quarter recommitted to developing its Ancuabe graphite project in Mozambique on a large-scale basis.

Following a site visit from proposed cornerstone investor Shandong Yulong, the board of Triton and the proposed investor decided to re-commit to the project due to the strong and increasing demand for graphite from both battery and industrial applications, as well as the potential returns from the project.

The large-scale development plan targets the mining and processing of one million tonnes per annum of ore and the production of 60 thousand tonnes per annum of high-purity large flake graphite concentrate.

The 2017 study recognised the project as a “globally significant” graphite development project with returns of US$298 million (A$423 million) over a 27-year life and a short payback period of 3.7 years.

The company moved to update the DFS during the quarter. The update focused on refreshing the key inputs which included basket pricing, upfront capital expenditure, operating expenditure and sustaining capital expenditure.

The site visit from Shanghai-listed Shandong Yulong also included visiting the Balama North project, peer projects and infrastructure locations to conduct due diligence and early engineering purposes.

Triton also gained the approval of the DUAT (land use agreement) and RAP (site land user relocation agreement) and submitted the application for approval of the environmental licence to the Mozambique cabinet. It expects approval in the June 2023 quarter.

On November 11, the company appointed Rod Zhang as Non-Executive Chairman, replacing Max Ji in the role.

On September 5, the company announced a proposed cornerstone investment of 178,571,429 fully paid ordinary shares at 28 cents each to raise $5 million. The funds will be used towards developing the Ancuabe project.

Triton’s cash on hand to end the quarter totalled $3 million, with commitments for a further $5 million.

Shares in Triton were last trading at 3.7 cents at 3:13 pm AEDT.