Triton Minerals, an Australian mining company, has finalized a lucrative deal with China’s Shandong Yulong Gold to divest a 70% interest in its graphite assets in Mozambique for A$17m. The agreement includes the sale of stake in various graphite projects, paving the way for Triton to focus on its flagship Ancuabe graphite project.
According to the memorandum of understanding (MOU) signed between the two companies, Triton will receive the A$17m payment in stages. An initial payment of A$2.55m is expected within 15 days of signing the MOU, with subsequent payments subject to certain conditions being met. The final instalment of A$8.5m is set for February 2025.
Triton’s executive director, Andrew Frazer, expressed his optimism about the deal, stating that it presents a significant opportunity for the company to realize value through expected cash payments and to diversify its portfolio with new acquisition opportunities. Triton will retain a 30% interest in the Mozambique assets, providing exposure to the potential upside in the graphite market.
The formal agreements are anticipated to be executed in mid-September 2024, with the deal expected to close in February 2025 pending shareholder approval and other necessary conditions. This strategic move by Triton aligns with its long-term growth plans and commitment to maximizing shareholder value.
