Triton enters administration

Subiaco-based Triton Minerals has been placed into voluntary administration, only two days after the graphite explorer's recently appointed managing director Garth Higgo said it was well poised to advance its projects toward production.

Three representatives of Ferrier Hodgson have been appointed as administrators of Triton.

In a statement, Ferrier Hodgson said its immediate priority was to explore opportunities to restructure the Mozambique-focused explorer in the short term.

“The administrators are working with the directors in reviewing the company’s operations and financial position including conferral with the company’s stakeholders to formulate potential strategies to preserve and restructure the company and its underlying operations,” Ferrier Hodgson said.

Triton is chaired by former Fortescue Metals Group chief financial officer Chris Catlow.

Mr Higgo joined the company last December and was appointed managing director in January, on a base salary of $400,000 per anum.

The company also appointed a new chief operating officer and a new chief financial officer in January.

Experienced mining executive Rodney Baxter joined the board as a non-executive director at the same time, but resigned two weeks later, when Alan Jenks also resigned as a non-executive director.

The move into administration comes after the company raised $12 million at 35 cents per share in May last year.

It has subsequently burned through that money, with a cash balance of just $344,000 at the end of December, according to its latest quarterly report.

The company recently attempted to raise $11.3 million from investors to fund work at its Balama North graphite project in Mozambique.

It raised a total of $4 million, with $1.84 million coming from its shareholders and the balance from underwriter GMP Securities.

In a corporate update released two days ago, Mr Higgo said the company was assessing potential options to support necessary test work and drilling work prior to committing to a definitive feasibility study for its Ancuabe project, adjacent to its Balama North project.

“The overriding focus is to attract long-term stakeholders that share Triton’s vision of supplying raw materials into current and future markets and technologies that are reliant on premium quality flake graphite,” he said.

Triton shares were trading at 6.1 cents each prior to suspension today.