Tirupati Graphite PLC has clarified some details of the agreement with Battery Metals Limited to acquire the entire issued share capital of its subsidiary Suni Resources SA owing to some questions received from investors in relation to the shareholder loans amounting to around A$29 million that will be assigned to the company.
TG said it will not be assuming any external debt as a result of the acquisition and it will not have any obligation in respect of repayment of or the payment of interest in respect of any third-party debt upon completion as a result of the acquisition of Suni Resources.
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It added that the debt assigned to TG by Battery Minerals group companies shall on completion become an intra-group debt within the enlarged TG group owed by Suni Resources to TG.
The company further confirmed that arrangements have been progressed for the provision of the bank guarantee to be completed which will allow for the last steps towards closing of the acquisition of Suni Resources to be progressed.
In a statement, Shishir Poddar, CEO of Tirupati Graphite, said: “We felt duty bound to correct the misconception that the company is acquiring any external debt through the acquisition of Suni Resources. The agreed consideration is the only cost to Tirupati for acquiring these transformational, ready-to-construct projects with globally significant resources.
“Without taking on any debt, TG will acquire the Balama Central and Montepeuz projects in Mozambique, which are both fully licensed for construction to >150,000 tpa flake graphite production capacity and which have already benefited from significant investment to this date.”
Tirupati Graphite is a specialist flake graphite company, a material vital in the energy transition economy. The company places a special emphasis on ‘green’ applications, including renewable energy and energy efficiency, energy storage and thermal management and is committed to ensuring its operations are sustainable as well.
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The company’s operations include primary mining and processing in Madagascar, where it operates two key projects, Sahamamy and Vatomina; 12,000 tonnes per annum (tpa) installed capacity of high-quality flake graphite concentrate with up to 96% purity is currently being produced and sold to customers globally, planned to increase to 84,000 tpa as per the company’s modular medium-term development plan.
