Triton Minerals has signed a non-binding Memorandum of Understanding (MoU) with Qingdao Jinhui Graphite in relation to the development of the Ancuabe Graphite Project in Mozambique.
Image: Graphite (2X3cm). Photo courtesy of Eurico Zimbres FGEL/UERJ/Wikimedia Commons.
The MoU follows an approach from Jinhui and subsequent commercial and technical meetings between Triton and Jinhui management. Triton and Jinhui will now commence technical, legal and commercial due diligence and continue negotiations with a view to executing a binding agreement within six months.
As envisaged in the MoU, the binding agreement would include:
- A direct project level investment of up to 10% in the Ancuabe Graphite Project
- Financing support through concessional debt and/or equipment financing facilities
- Offtake of up to 15,000 tonnes per annum of graphite concentrate
- Technical collaboration for value-added processing for supply of Ancuabe graphite into the Chinese flame retardant, refractories and battery markets
Commenting on the MoU with Jinhui, Triton Managing Director Peter Canterbury said:“This MoU with Jinhui is a significant endorsement of the Ancuabe Project. It is further evidence that Chinese domestic producers are now actively looking to East Africa to expand and diversify their high purity and large flake supply chains in preparation for the significant growth anticipated in the battery and flame-retardant materials markets. This MoU also is complementary to our financing discussions in China which are progressing well.”
Source: Company Press Release