Triton Minerals sells 70% of its Mozambique graphite assets to Chinese company for $17 million

Triton Minerals (ASX:TON) has executed its premediated deal to sell 70% of its Mozambique graphite assets to a Chinese company for $17 million. Shandong Yulong Gold Ltd (SYG) has already inked an MOU with Triton back in July towards that deal; on Monday, Triton formally executed the move.

In short: This means $17M in Triton’s coffers, which is what the company is really after, here. Graphite – sometimes called the ‘forgotten battery metal’ – is subject to one issue other commodities aren’t; its pricing is opaque.

That makes it hard to tell how economic a project is or is not and this is one large factor that makes it hard for juniors to get graphite projects off the ground – especially when in tier one jurisdictions.

All in all, Triton wants SYG to come and do the heavy lifting. It will keep its 30% exposure to the project.

In short, all of Triton’s Mozambique assets are going to to SYG on a 70/30 split in the latter’s favour.

That includes “its interests in the entities that hold the Ancuabe Graphite Project, including 70% of its interest in the intellectual property and drill core assets relating to the Nicanda Hill and Nicanda West Projects and 70% of its interest in the Cobra Plains mining concession.”

The company already has $2.55M from SYG; another $5.9M is dude before January 1, 2025 and the remaining $8.5M is due by February 28, 2025.

With those funds, Triton will stay in Mozambique – but swing to the Aucu Project, which is a copper-gold play.

“This agreement underlines our shared commitment to the Ancuabe Graphite Project and positions Triton as a key player in the global graphite market,” Tirton COO Adrian Costello said.

“The addition of the Aucu Gold and Copper Project marks an exciting new chapter for Triton, and we look forward to identifying further opportunities that align with our vision of growth and delivering exceptional value to our shareholders.”

TON last traded at 0.9cps.

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