HIGHLIGHTS:
Memorandum of Understanding to divest 70% of Triton’s Mozambique Graphite Assets
Triton and Shandong Yulong have entered into a binding Memorandum of Understanding (“MOU”) whereby Triton has agreed to divest 70% of the entities that hold the Mozambique Graphite Assets to Shandong Yulong.
Total proceeds of up to A$17 million pursuant to the Transaction expected to be received by Triton in the following staged payments:
The specific payment mechanics for the second two tranches will be subject to the formal documentation to be entered into to give effect to the MOU.
Triton expects to use the sale proceeds from the Transaction:
Triton’s Executive Director, Mr Andrew Frazer said:
“The compelling offer submitted by Shandong Yulong represents a significant opportunity for Triton to realise value via expected cash payments totalling A$17 million in the near term. These funds will provide Triton with the opportunity to diversify its portfolio via the assessment of value accretive acquisition opportunities.
Triton will initially retain a 30% ownership in the Mozambique Graphite Assets which provides Triton with exposure to upside in the graphite market.
Ultimately, we think this Transaction is the best way to generate value for shareholders in a timely manner, given Shandong Yulong’s size, balance sheet and desire to develop and operate the Mozambique Graphite Assets. We look forward to working with Shandong Yulong in executing the Transaction and going forward as a joint venture partner.”
It is a condition precedent to the Transaction that Triton and Shandong Yulong enter into a joint venture agreement to develop and operate the Mozambique Graphite Assets following completion of the Transaction, with initial equity ownership of 70% (Shandong Yulong) and 30% (Triton).
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