PERTH (miningweekly.com) – China’s Jinan Hi-Tech is set to invest A$19.5-million into ASX-listed Triton Minerals through a share placement and the acquisition of shareholder Shandong Tianye Mining’s (STM’s) 19.3% stake in the company.
Subject to shareholder approval, Jinan would subscribe for A$8.5-million shares in Triton, taking some 207.3-million shares at 4.1c apiece.
Meanwhile, the State-owned Jinan would also acquire STM’s 19.3% stake in Triton in a separate deal valued at A$11-million, subject to both Chinese and Australian regulatory approvals.
The two transactions would give Jinan a combined shareholding of 34.01% in Triton.
“The board welcomes the investment of Jinan in Triton and its commitment to provide both technical and commercial support for the building of the Ancuabe graphite project,” said Triton MD Peter Canterbury.
He noted that the funds raised will be used to start early construction activities, detailed engineering and the placement of long lead time orders for the project.
“Through this agreement we have now secured the cornerstone equity component of the development funding with a commitment to finalise the debt funding for the Ancuabe graphite project, which we will look to finalise as soon as possible.”
In addition to its investment, Jinan has also agreed to provide Triton with financing to support the engineering, procurement and construction package debt funding, and has already undertaken significant worth with Chinese banks on this funding.
Since Jinan’s proposed stake in Triton would exceed 20%, the company was planning a shareholder meeting as soon as practicable to allow shareholders to vote on the strategic placement.
With its stake in the company, Jinan would be entitled to board representation, with no right to casting a vote, provided that the Chinese firm’s interest in the company is maintained above 28%.
Triton owns three graphite projects in Mozambique.