01/04/2015 - 10:54

Triton up on $US100m pa offtake deal

01/04/2015 - 10:54

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Shares in Subiaco-based explorer Triton Minerals skyrocketed on news it signed a $US2 billion ($A2.6 billion) offtake agreement with a Chinese company for graphite from its Mozambique project.

Triton up on $US100m pa offtake deal
Triton managing director Brad Boyle and Yichang chairman Yue Bin at the contract signing ceremony in China.

Shares in Subiaco-based explorer Triton Minerals skyrocketed on news it signed a $US2 billion ($A2.6 billion) offtake agreement with a Chinese company for graphite from its Mozambique project.

The 20-year binding offtake agreement with Yichang Xincheng Graphite will generate $US100 million in revenue per annum for Triton at a floor price of $US1,000 per tonne, with the full contract value to be determined by the future market price for graphite.

Under the terms of the deal, Triton is not restricted from selling graphite from its Mozambique project to other parties.

It also has exclusive rights to supply graphite to Yichang from Mozambique, Madagascar, Malawi and Tanzania.

“This is a very special day for Triton as this binding commercial agreement is with a graphite specialist organisation that has mined, manufactured and sold expanded graphite products for nearly 20 years,” Triton managing director Brad Boyle said.

“We are both proud and fortunate to be associated with a world-recognised and large-capacity graphite company that supplies materials for some of the world’s most distinguished electronics and technology companies.”

Yichang chairman Yue Bin said tests conducted in the company’s laboratory on Triton's graphite material performed well beyond expectations.

“We feel (the Mozambique graphite) is ideally suited to support and build our diverse range of expandable graphite products,” Mr Bin said.

“The long term supply of high quality graphite will not only allow our company to develop competitively priced products for the global markets but will also contribute, indirectly, to the long-term economic growth of Mozambique.”

Triton said it was continuing the search for further offtake opportunities world-wide.

Triton shares were up 62.6 per cent to 54.5 cents per share at 10:50am.

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