Triton Minerals (ASX: TON) will move to a 60% controlling interest in key graphite projects in Mozambique, after finalising an increase from a 49% stake with its joint venture partner, unlisted Grafex Ltd.
The change is significant as a shareholding below 50% would have rendered future development decisions and funding for Balama and Anucabe projects more difficult to complete. It should significantly assist with timelines for exploration and development.
As consideration for the increased stake, Triton will make a number of staged cash payments over the next 18 months (total of US$550,000) and share issues (total 5 million Triton shares) to the shareholders of Grafex Ltd.
Importantly, at the commencement of a Definitive Feasibility Study, Triton would then move to a 75% equity interest in Grafex Ltd.
Triton can them move to an 80% equity interest in Grafex Ltd should a project move into graphite production.
Triton managing director Brad Boyle said “The company has taken steps to ensure it has a majority controlling interest of the Mozambique graphite projects. This position will allow Triton to advance the graphite projects in a more timely fashion.
"Triton has taken this step in light of the strong drilling and exploration results that have demonstrated various zones of large flake high grade graphite and vanadium mineralisation at the Nicanda Hill prospect and along the 5km mineralisation zone on the Cobra Plains prospect both in the Balama North Project.”
Recent
In October, Triton flagged it was finalising preparations for a new diamond drilling program at Nicanda Hill prospect, which is within the Balama North project.
If Triton discovers graphite and vanadium at Nicanda Hill, it will build on the high grade graphite and vanadium drilling results already obtained at the Cobra Plains prospect within the identified 5 kilometre mineralisation zone.
This could see multiple large flake graphite deposits defined at Balama North.
Cobra Plains
Triton said that the diamond drilling program at the Cobra Plains prospect has now been completed, with drill samples for all intersected graphite zones to be sent to the South African laboratory for analysis.
Initial results are expected to be available from around mid-December.
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