Binding offtake agreement
Offtake partner YXGC-a leading manufacturer of high value and scalability
Graphite and battery anode manufacturer
Triton Minerals Limited (ASX: TON, Triton or our company) is pleased to announce the signing of a binding offtake agreement with Chinese graphite product expert Yichang Xincheng Graphite Co., Ltd. (YXGC) for its Ancuabe graphite project in Mozambique .
YXGC is a leading producer of high-value expandable graphite and battery anode manufacturers.
Prior to this, a strategic review of the Ancuabe graphite project has recently begun, with a focus on putting the company's flagship project into production in a small-scale, low-capital expenditure, and commercially viable manner in the short term. The main goal is to build a commercial pilot plant (CPP), which can be put into production in a short period of time, which will produce commercially viable
The number of concentrates that will prove the long-term viability of the product and the large-scale project (60ktpa).
The company's ultimate goal for the Ancuabe project is to develop a large-scale project in accordance with the plan in DFS1 and obtain prior regulatory approval. CPP is proposed to be located at the Ancuabe site in Mozambique.
In the DFS1 of the Ancuabe Graphite Project, Triton established the project as a globally important graphite development project with substantial returns (US$298 million, IRR 37%). The goal is to produce 60ktpa of high-purity large flake graphite concentrate during the long mine life. Mine (27 years), with a short payback period (3.7 years).
Since the focus of the strategic review is the company's investigation of the potential for expanding the business considered in DFS, initially targeting smaller-scale production, the establishment of off-take is one of the key elements of the strategic review of the CPP project. A binding long-term off-take is signed with YXGC After the agreement, Triton is now ready to continue the rapid development of the small-scale production of the Ancuabe graphite project.
Triton believes that the initial binding offtake agreement with YXGC is an encouraging and important milestone in the development of the Ancuabe graphite project.
Triton is committed to making the Ancuabe graphite project a benchmark in the global graphite industry, aiming to provide the world's lowest cost and most diverse graphite product series, as well as a long-term reliable supply of high-quality flake graphite.
Mr. Andrew Frazer, Executive Director of Triton said:
"Yichang Xincheng Graphite Co., Ltd. is a world-renowned leading supplier of various high-quality, high-tech expandable graphite and battery-grade graphite products. This binding commercial agreement is signed with a graphite professional organization, which has Mining, manufacturing, and selling expandable graphite products for nearly 10 years. We are proud and fortunate to be able to cooperate with a world-renowned leading graphite company that provides materials for some of the world's most outstanding electronics and technology companies.
Triton has previously established a relationship with YXGC. I am very pleased that the Triton team has re-cooperated with the company. As far as we know, the company is the world's largest private producer of expandable graphite. We seek to rapidly develop the Ancuabe graphite project, initially through a commercial pilot plant.
I would also like to thank Chairman Li of Jinan Hi-Tech for his support and assistance to the strategic review and CPP initiative. "
Mr. Yue Xinqing, Chairman of Yichang Xincheng Graphite Co., Ltd. said:
"Our company is China's largest private manufacturer of high-value expanded graphite products and provides products to some of the world's most famous technology companies. We are very pleased to reach a binding long-term commercial agreement with Triton. Testing is in our laboratory. , The performance of Triton materials far exceeded our highest expectations. We believe that by reaching an agreement with Triton, our company is in a favorable position to support and develop our diversified expandable graphite products. Triton’s long-term supply of high-quality graphite will not only enable Our company is able to develop competitively priced products for the global market and will indirectly promote the long-term economic growth of Mozambique."
www.tritonminerals.com | Australian Securities Exchange: TON ABN: 99 126 042 215
The binding offtake agreement supersedes the agreement on the offtake of the Nicanda Hill project signed between the company and YXGC on March 30, 2015. Triton will also do its best to assist YXGC in finding graphite concentrate procurement opportunities in accordance with YXGC's requirements. Triton is continuing to seek more offtake opportunities globally.
Key terms of a binding offtake agreement
5 years, with an option to extend for another 5 years
50,000 tons, optionally another 50,000 tons
US$1,000 per ton of graphite concentrate
Triton does not restrict the sale of its graphite to other parties
Triton will do its best to assist YXGC in purchasing graphite
According to YXGC regulations, centralized purchase opportunities
Within 36 months after signing the agreement, the following conditions apply:
• Triton obtains all relevant government approvals
• Triton commissions one or more processing plants
• Triton achieved satisfactory commercial production of materials
• Triton sends YXGC a notice of intent to start delivery
www.tritonminerals.com | Australian Securities Exchange: TON ABN: 99 126 042 215
About Yichang Xincheng Graphite Co., Ltd.
YXGC is located in Yichang, China. This area of China is known as the hydropower capital of the world and is one of the largest mineral processing enterprise areas in China.
YXGC processing plant in Yichang, China
YXGC has the world's most advanced graphite processing equipment, professional management and superior production system such as graphite airflow classification equipment, ultra-fine crushing equipment, flexible graphite sheet and coil production lines.
Examples of some processing equipment used by YXGC
www.tritonminerals.com | Australian Securities Exchange: TON ABN: 99 126 042 215
The main graphite products produced by YXGC include micro-powder graphite, high-purity graphite, natural flake graphite, expandable graphite, amorphous graphite, flexible graphite sheets and rolls, flexible graphite ribbons, flexible graphite ribbons, reinforced expanded graphite sheets, flexible graphite yarns, Flexible graphite braided packing, molded graphite ring, graphite gasket, spiral wound gasket, exhaust manifold gasket, expanded graphite fireproof strip, expanded graphite braid, expanded graphite cloth, graphite crucible and high-purity graphite products.
Examples of some graphite products produced by YXGC
Flexible Graphite-Sheet and Coil
www.tritonminerals.com | Australian Securities Exchange: TON ABN: 99 126 042 215
This is an excerpt from the original content. To continue reading, please visit the original document here.
Triton Minerals Limited released this content on November 8, 2021, and takes full responsibility for the information contained therein. It is distributed by the public at 21:45:01 on November 8, 2021, UTC time, unedited and unaltered.