17/08/2021 - 11:30

Battery Minerals makes $12.5m sale

17/08/2021 - 11:30

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Western Australian company Battery Minerals has agreed to sell two graphite projects in Mozambique to an existing producer for $12.5 million in cash and shares.

Battery Minerals is selling its Montepuez and Balama graphite projects in Mozambique. Photo: Battery Minerals

Western Australian company Battery Minerals has agreed to sell two graphite projects in Mozambique to an existing producer for $12.5 million in cash and shares.

Battery Minerals, along with its subsidiary Rovuma Resources, will sell its entire shareholding in Suni Resources SA – which holds the Montepuez and Balama projects – to London-listed Tirupati Graphite.

Tirupati is a specialist graphite producer as well as graphene and advanced materials developer, with operations in Madagascar and India. It has a market capitalisation of about $183 million.

The company has agreed to pay $11 million in cash to acquire Suni Resources, as well as issue $1.5 million worth of shares to Battery Minerals, which will become Tirupati's second-largest shareholder.

West Perth-based Battery Minerals said it would retain a free-carried exposure to the Montepuez and Balama projects, as well as Tirupati's other production and development assets.

Stage one of the Montepeuz project is expected to produce 50,000 tonnes of graphite flake concentrate each year, over a projected 86-year mine life.

Battery Minerals previously said it intended to grow production to about 100,000tpa.

Meanwhile, stage one of the Balama project is expected to produce 58,000tpa before an expansion to 110,000tpa.

The deal remains subject to a number of conditions, including shareholder and Mozambique government approvals.

Battery Minerals was trading 6.7 per cent lower at 11:47pm AEST to 1.4 cents.

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