ASX-listed Triton Minerals has entered into an agreement with Gregory James Sheffield and Grafex Limitada under which Triton has agreed to purchase Sheffield’s 20% interest in Grafex.
On completion of the purchase, Triton’s interest in Grafex will increase from 80% to 100%, and accordingly, Triton will have a 100% interest in its graphite projects in Mozambique.
In consideration of the purchase, the company has agreed to pay Sheffield $1.5-million.
Triton MD Peter Canterbury noted in a statement on Wednesday that acquiring full 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.”
He further said that the transaction was value accretive and that the simplified ownership structure would assist any discussions in relation to potential joint ventures for the Nicanda Hill project, which is one of the world’s largest graphite projects and a globally significant vanadium deposit.
Completion of the transaction is expected to occur on, or around, March 21 and is conditional on all necessary consents and approvals being granted. If completion occurs without the responsible Mozambique Minister’s consent to the transfer of the interest, it is contemplated that Triton will not obtain the legal title to Sheffield’s interest.
Triton, however, will then be entitled to the economic benefits in relation to Sheffield’s interest in Grafex, to the extend permissible, unless and until the required approval is obtained.