Mozambican Graphite: Triton Minerals shares rise on placement to largest shareholder

The company is expected to benefit from recent regulatory changes.

Triton Minerals Ltd (ASX:TON) has secured a strategic investment of $1.23 million via the placement of shares to its largest shareholder, Shandong Tianye Mining Co, at $0.048 per share.

The company’s shares were last trading 14% higher intra-day, at $0.049.

The strategic placement by Shandong Tianye follows detailed due diligence in China and its decision to support Triton’s objective of developing its portfolio of high quality Mozambique graphite projects.

Shandong Tianye has also signed an agreement to provide technical and marketing services for Triton in China.

Triton’s initial focus will be to supply high purity expandable graphite from its flagship Ancuabe project in Mozambique, to the global building materials sector.

Funds raised from the placement will be used to complete the definitive feasibility study (DFS) currently underway at Ancuabe, which is on schedule to be completed in December 2017.

The demand for expandable graphite is expected to be strengthened by Chinese regulations that require the use of flame retardant building materials.

Triton’s prospects could also be positively impacted by the uncertainty of mining legislation in Tanzania, where many ASX listed graphite projects are domiciled.

The Indicated and Inferred resource for the Ancuabe Graphite Project comprises 27.9 million tonnes grading 6% total graphitic carbon for 1.68 million tonnes of contained graphite.

Triton’s recent scoping study projected a net present value of US$128 to US$246 million for the project with a payback period of 2.7 to 4.8 years (based on sensitivity analysis).

Source: ProActive Investors Australia

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