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PERTH (miningweekly.com) – Minerals explorer Triton Minerals has raised A$8.5-million through a share placement to institutional and sophisticated investors to accelerate exploration activity at its Balama North graphite project, in Mozambique.
The ASX-listed junior reported on Thursday that it had placed some 17-million fully paid ordinary shares, at an issue price of 50c each to raise the capital.
“The significant support we have received from existing shareholders and new institutional and sophisticated investors reaffirms the company’s belief that Balama North is emerging as a world-class graphite project,” said Triton MD Brad Boyle.
He noted that the placement gave Triton the ability to increase ownership of its projects and to rapidly advance the Balama North project, and in particular to continue to add value for its shareholders.
“Putting the company in a well funded position with the proceeds from the placement enables us to also maintain an aggressive drilling programme at the Nicada Hill prospect, where we presently have two diamond and one reverse circulation rig on site.
“Nicada Hill contains multiple high-grade graphite zones that are being targeted and remains open in all directions,” Boyle said.
Subject to further exploration success, Triton would use the funds to delineate an inferred Joint Ore Reserves Committee-compliant resource at the Nicada Hill prospect by the fourth quarter of this year.
Metallurgical and mining studies would also continue, with Triton expected to release the results of a scoping study that would incorporate the Nicada Hill exploration results.
Meanwhile, Triton also announced on Thursday that it had agreed to acquire the remaining 40% interest in all of the Mozambique graphite projects, which include Balama North, Balama South and Ancuabe from its joint venture partner Grafex.
Triton would pay Grafex $20-million in a combination of cash and ordinary fully paid shares, with the payment to be structured in two tranches.
Grafex would also be entitled to five-million unlisted Triton options, at an exercise price of 70c each, with a three-year term.
“Triton being able to acquire 100% of the Mozambique graphite projects is a very significant milestone for the company. This now provides Triton with full control over the projects and in particular allows the company to control the rapid advancement and development of the key graphite project at the Nicada Hill prospect,” said Boyle.