Triton Minerals Ltd (ASX:TON) has announced a $2bn, 20 year binding off-take agreement with the Chinese graphite products specialist Yichang Xincheng Graphite Co. Triton, a Western Australia based mining company, is the owner of the world’s largest known graphite-vandium site in Mozambique, Africa. The agreement will give exclusive supply rights to the Chinese company from sites in Madagascar, Malawi and Tanzania, in addition to the Mozambique site. The contract guarantees a floor price of $US1000 per tonne, with the full contract value to be determined by the future sales price set by the applicable market price. The contract is aiming for a supply of 100,000 tonnes of graphite per year with the option to scale up from initial production.
Executives from both companies have hailed the agreement as “fortunate” and that they have “the highest expectations” for the deal. “Yichang Xincheng Graphite Co., Ltd is globally renowned as a supplier of a diverse range of high quality, high-tech expanded graphite products. 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” said Managing Director and CEO of Triton Brad Boyle. Today’s announcement has caused shares of Triton to surge. TON is up 22.5c, or 67 per cent, at 56c per share around 2:00pm on Wednesday. TON has made major gains in the past 12 months, advancing over 380 per cent. TON has advanced over 200 per cent so far this year alone.
Author: Imran Valibhoy
Apr 01, 2015
Since Joining the firm in 2006, Imran has worked on a range of M&A and Capital Market transactions in the natural resources, mining as well as projects in the renewable energy sector. Prior to joining Wise-owl, Imran worked at Euroz Securities in Perth, aiding in the advisory and valuation of companies in the mining and industrial sectors in Australia. Imran has a Masters in Banking & Finance from City University's Class Business School in London and a Bacheloor degree in Commerce from UWA.