Junior Triton Minerals has completed the acquisition of an economic interest in the remaining 20% shareholding of Grafex.
Triton in February struck a deal with private owner Gregory James Sheffield, under which the company will purchase his 20% interest in Grafex for $1.5-million, taking its own interest in the Mozambican graphite developer from 80% to 100%.
Triton MD Peter Canterbury said on Tuesday that the company would need to seek formal approval for the transfer of the interest under Mozambique legislation to complete the transfer of the legal title; however, it would enjoy full economic benefit to the shares until a formal approval was received.
“We are pleased to announce this step towards consolidation of the ownership of Grafex and its graphite projects in Mozambique. Acquiring full economic ownership of the projects comes at an exciting point in the development of the Ancuabe project and will greatly assist in our efforts to secure approvals in Mozambique, as well as offtake and financing negotiations to support an investment decision in the second quarter of 2018.”
A recent definitive feasibility study determined that Ancuabe would require preproduction capital of $99.4-million to build a mine that is capable of producing about 60 000 t/y of graphite concentrate. The study estimates a pretax net present value of $298-million, a pretax internal rate of return 36.8% and near-term payback of 3.8 years.
Source: Mining Weekly