PERTH (miningweekly.com) – Graphite developer Triton Minerals will raise $4-million through a share placement to assist in funding its development activities at its Ancuabe graphite project, in Mozambique.
Triton on Friday said that an initial A$1.2-million will be raised through a placement to the company’s largest shareholder Shandong Tianye Mining (STM), with a fully underwritten entitlement offer to follow, raising a further A$2.8-million.
MD Peter Canterbury said the financing support from STM was a critical step in enabling Triton to secure engineering, procurement and construction-linked debt funding for Ancuabe.
“The board is extremely pleased to announce the continued support of STM as it increases its stake in Triton to 19.4%. The support shown by STM provides further evidence of the growing demand for expandable graphite in China.
“The Ancuabe project is ideally suited to supply large flake, high concentrate expandable graphite.”
STM will subscribe for 14-million fully paid ordinary shares, priced at 4.7c each to raise an initial A$660 000. The company will then participate in the fully underwritten entitlement offer for a further A$340 000, which will take their shareholding in Triton to 19.4%.
Triton on Friday said that it has also received firm commitments for a further 10.6-million shares, priced at 4.7c each, to a sophisticated investor on the same terms as the STM placement, to raise a further A$500 000.
Under the fully underwritten entitlement offer, eligible shareholders would be offered one new share for every fourteen shares held, at the issue price of 4.7c each, to raise around A$2.8-million.
Participants in the entitlement issue will also be issued with one free attaching option exercisable at 10c each and expiring at the end of September 2020, based on one new option for every one share issued.