ASX-listed Triton Minerals has entered into a share sale and purchase agreement (SSAP) with Chinese company Shandong Yulong Gold, through its subsidiary NQM Gold 2, to sell an interest in the Ancuabe graphite project in Mozambique.
This agreement follows the company’s earlier memorandum of understanding (MoU) for the sale of at least 70% of its stake in the entities holding the Ancuabe project.
This includes 70% of its intellectual property and drill core assets related to the Nicanda Hill and Nicanda West projects, as well as 70% of its interest in the Cobra Plains mining concession.
The deal is expected to generate near-term cash flow of $17 million through three staged payments: a $2.55 million deposit paid in July, $5.95 million upon precompletion by December 31, and $8.5 million upon final completion by February 28.
Upon precompletion, Yulong will appoint three additional directors to the boards of Kwe Kwe Graphite and Grafex.
Triton will retain a 30% joint venture (JV) interest in the Mozambique graphite assets, allowing the company continued exposure to the growing graphite market.
The proceeds from the sale are expected to fund Triton’s JV contribution and support its exploration activities, including the recently acquired Aucu copper/gold project in Tete, Mozambique.
The funds will also be used for working capital and to explore other potential acquisitions in the battery minerals and resource sectors in Mozambique and Australia.
The SSAP marks a significant milestone in Triton’s strategic asset sale process and aligns with its focus on unlocking shareholder value and advancing its corporate goals.
“Triton remains committed to its Mozambique graphite projects and is confident that this partnership with Yulong will unlock significant value for shareholders,” said the company.
“This collaboration will support the successful development and commercialization of Triton’s high-quality graphite resources.”
With the execution of the SSAP, Triton and Yulong will begin developing strategies for the Ancuabe graphite project. Triton also announced the recent approval of the environmental license for the project, advancing it toward production.
“We are excited to take this significant step forward with Shandong Yulong and NQM. This agreement solidifies our shared commitment to the Ancuabe graphite project and positions Triton as a key player in the global graphite market,” said Triton executive director and COO Adrian Costello on December 9.
