- Triton Minerals (TON) signs an offtake agreement with Yichang Xincheng Graphite Co (YXGC) for graphite produced at the Ancuabe Project in Mozambique
- Over an initial term of five years, YXGC has agreed to purchase 50,000 tonnes of graphite concentrate
- Based on a minimum sale price of US$1000 (A$1350) per tonne, the deal is expected to net Triton around US$50 million (A$67.39 million) over the five years
- The deal de-risks the plan to bring Ancuabe to production in the short-term via a small commercial pilot plant
- Shares in Triton Minerals are up 16.28 per cent to $0.05 as of 10:34 am AEDT
Triton Minerals (TON) has signed a binding offtake agreement with Yichang Xincheng Graphite Co (YXGC) for graphite produced at the Ancuabe Graphite Project in Mozambique.
According to this morning’s announcement, the deal both advances and de-risks Triton’s plan to bring Ancuabe to production in the short-term on a small-scale, low-capex and commercially-viable basis via a commercial pilot plant.
Based in China’s Yichang region, YXGC produces a wide range of graphite products, including micro-powder graphite, high-purity graphite, natural flake graphite and expandable graphite.
Over an initial term of five years, YXGC has agreed to purchase 50,000 tonnes of graphite concentrate, which — based on a minimum sale price of US$1000 (A$1350) per tonne — is expected to net Triton around US$50 million (A$67.39 million).
The deal may be extended by another five years for another 50,000 tonnes.
“We are both proud and fortunate to be associated with a world-renowned, leading graphite company that supplies materials to some of the world’s most distinguished electronics and technology companies,” Triton Executive Director Andrew Frazer said.
“Triton has previously had a relationship with YXGC and I am delighted the Triton team has re-engaged with the company . . . in our quest to rapidly develop the Ancuabe Graphite Project, initially via commercial pilot plant.”
Today’s agreement supersedes an earlier one that was signed in March 2015, and which related to offtake from the Nicanda Hill Project.
It also follows a strategic review of the Ancuabe Project, which looked at establishing a small, 10,000-tonne-per-year pilot plant that would prove the viability of a large-scale plant down the track capable of producing 60,000 tonnes per year.
“Tests in our laboratory on Triton’s material performed well beyond our highest expectations and we feel an agreement with Triton places our company is a strong position to support and build on our diverse range of expandable graphite products,” YXGC’s Chairman Yue Xinqing said.
“The long term supply of high quality graphite from Triton will not only allow our company to develop competitively priced products for the global markets but will also contribute, indirectly, to the long term economic growth of Mozambique.”
Shares in Triton Minerals are up 16.28 per cent to $0.05 as of 10:34 am AEDT.