Flake graphite producer Tirupati Graphite, which plans to list on the LSE later this year, is hoping to raise up to £3-million through the placement of convertible loan notes to fund its growth projects.

Under the terms of the offering, which was announced on Tuesday, loan note holders will have the right to convert the loan notes into ordinary share capital of the company at any date from 15 days after it lists on a recognised stock market.

The company wants to expand its existing production capabilities to become a significant producer of primary high-quality flake graphite in Madagascar, as well as a producer of high-purity flake graphite from its downstream value-added processing facilities in India, to target growth markets for high-purity graphite in the bourgeoning electric vehicle (EV), energy storage, flame retardants, composites and graphene industries.

In line with these growth plans, Tirupati will use the funds to complete the construction of a 6 000 t/y module at its Vatomina plant, in Madagascar; start commercial production at its 1 200 t/y Patalganga flame retardant project, in India; progress the development of its downstream processing project and graphene and technology centre, in India; and advance the company towards an initial public offering.

Tirupati already operates the Sahamamy flake graphite production plant, in Madagascar, where the first module is ramping up to full capacity of 3 000 t/y. The first flake graphite consignments produced at Sahamamy were shipped last month and Tirupati plans to start construction on another 18 000 t/y production module in the third quarter of 2020.

At the Vatomina project, located 8 km from Sahamamy, construction is under way on the first 6 000 t/y production module, with commissioning to start in the fourth quarter of this year.

Tirupati will add a further three 18 000 t/y modules at the plant to eventually take production to 60 000 t/y.

Construction on the first of the three additional modules is scheduled to start in the first quarter of 2020.

DOWNSTREAM PROCESSING
The company's Tirupati Speciality Graphite (TSG) project has already commissioned a 1 200 t/y flame retardants application focussed plant, in India. The plant is expected to start commercial production soon.

The TSG project will be capable of processing flake graphite from any source, including Tirupati's Madagascar operations. The company plans to eventually develop a 20 000 t/y facility to produce value-added high-purity graphite products, including expandable, spherical and mironised graphite.

Tirupati is also establishing the Tirupati Graphene and Mintech Research Centre (TGMRC), which will be an integrated technology and research centre comprising two centres of excellence – Grace and Minmet.

The Grace centre of excellence will manufacture about 10 kg a day of graphene and will develop processes and applications for graphene and specialty flake graphite for high-tech applications and markets, while the Minmet centre of excellence will focus on the development of ecofriendly technology for mineral processing.

The TGMRC will also provide support to Tirupati's entire business chain, including its downstream graphite business, with a focus on advanced graphite applications.

The company also expects the division to generate revenue in its own right through technology development and consulting.