Explorative miner and developer of the Mozambique Ancuabe Graphite Project Triton Minerals [ASX:TON] announced an onsite visit by Shandong Yulong.
The visit, a conditional requirement geared towards ‘due diligence and engineering purposes’, included representatives from a leading mineral processing equipment supplier.
In September, it was revealed that Shandong Yulong had offered a contribution of AU$5 million as a conditional cornerstone investment in the Ancuabe project.
The company’s share price has rocketed 16% this month, and 11.5% in the last week alone.
However, share value has shrunk over 19% year-to-date:
www.TradingView.com
Triton hosts Yulong
On 5 September, Triton Minerals released an ASX update with the details of a AU$5 million conditional cornerstone investment offered by the Chinese company.
The Strategic Placement was conditional on a visit to the Mozambique graphite project site.
Today, the graphite miner summarised the extensive visit which took place over 11 days.
Triton shared information to Yulong on its Ancuabe and Balama North Projects, Pemba Port, as well as AMG GK and Nipepe mines, resulting in the investor’s satisfaction and new understanding of the operational, logistics, community, and security considerations involved with operating the projects.
‘Chinese investment and business are involved not just in mining projects but in range of other businesses such as cement manufacturing, civils contracting, security, real estate development, logistics, hotels, restaurants, casinos and shopping centres,’ Triton stated.
‘Which demonstrates the opportunity to collaborate with local Chinese businesses all of which further strengthened Yulong’s confidence in the project.’
Shandong Yulong is a company listed on the Shanghai Stock Exchange, primarily engaged in trading minerals, metals, coal, chemicals, and other commodities.
The company has a market cap of $4 billion, and is also known as a minerals explorer intent on becoming a high-growth international mining company.
Mr Andrew Frazer, Triton’s Executive Director, reflected:
‘Triton was delighted to host Yulong in the recent country visit as Triton as it advances toward a final investment decision at our flagship Ancuabe Project. Yulong is an experienced investor in the mining industry in various jurisdictions and has clearly recognised the great development potential which exists in Triton’s projects and has the ability to assist Triton with its expertise in a number of disciplines including engineering, mining technology and construction, marketing and finance. Their contribution will be invaluable as we progress with project development and towards production.’
Yulong Representative and Tritons Chairman, Mr Rod Zhang added:
‘This is an exciting time for me personally and for Yulong in a time of growing graphite demand. I visited the Triton projects sites recently in Northern Mozambique and am excited at the prospect of being involved in the development of Triton’s impressive graphite projects. Yulong is delighted to invest in Triton, a resource company with large high-quality assets and excellent growth potential.
‘As a strategic investor in Triton, we will endeavour to assist Triton to accelerate the advancement of its flagship Ancuabe Graphite project through inputting our local and Chinese industry expertise, highly efficient sourcing of international capital and post-investment management.’
Last month, the company shared its quarterly results ended 30 September, announcing AU$4.8 million cash in bank and an additional AU$3.5 million to be raised through a tranche-1 institutional and sophisticated investment.
Triton has progressed its Stage 1 Scoping Study for processing 100–125k tpa (tonnes a year) of ore, and 5–8k of graphite concentrate.
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Regards,
Mahlia Stewart
For The Daily Reckoning Australia
