- Triton Minerals (TON) is set to receive a $5 million cornerstone investment from a major Chinese listed commodities and resources company
- Subject to shareholder and regulatory approvals, Shandong Yulong Gold will snap up around 178.5 million shares in TON at 2.8 cents each
- Each share will include one attaching option expiring in three years and exercisable at four cents
- The funds will go towards the development of the Ancuabe project in Mozambique, which has received backing from TON’s major shareholder, Jigao, and the company board
- Triton shares entered a trading halt ahead of the investment announcement and last traded at 2.8 cents
Triton Minerals (TON) is set to receive a $5 million cornerstone investment from a major Chinese listed commodities and resources company.
Subject to shareholder and regulatory approvals, Shandong Yulong Gold has agreed to buy 178,571,429 shares in TON at 2.8 cents per share, with each share including an attaching option expiring in three years and exercisable at four cents.
Shandong has a market capitalisation of around $4 billion and is primarily engaged in the trading of minerals, ferrous metals, coal, chemicals and other bulk commodities.
Shandong is also an explorer across a range of minerals and is reportedly committed to becoming an international mining company.
Triton plans to put the funds towards the development of its Ancuabe project in Mozambique, including advancing studies, approvals and the construction of a commercial pilot plant.
The Triton board and major shareholder Jigao have backed the company’s plans to develop the project as soon as reasonably practicable.
In this vein, the board has authorised Triton to take action to develop and construct the commercial pilot plant at the project.
Triton’s Executive Director Andrew Frazer said the support was just as important as the $5 million commitment.
“This will ensure the company capitalises on the green energy transition which has seen demand for graphite continue to build at a rapid rate, given its use in batteries for electric vehicles and energy storage as well as significant demand from flame retardant building material sector,” Mr Frazer said.
If shareholders approval the Shandong investment, this will take Jinan Hi-tech’s (JHT) interest in Triton to over 20 per cent given the fact that JHT owns 29 per cent of Shandong Yulong and 100 per cent of Jiago, which in turn holds a 30.65 per cent interest in Triton.
Approval will be sought at an extraordinary general meeting scheduled for the first half of the 2023 calendar year.
The placement end date is June 30, 2023.
Triton shares entered a trading halt ahead of the investment announcement and last traded at 2.8 cents.