Tirupati inks binding acquisition agreement for graphite projects
Tirupati Graphite has entered into a binding acquisition agreement for the acquisition of the entire issued share capital of Suni Resources SA.
Suni Resources holds the Mozambique portfolio of graphite assets of Battery Minerals, which includes the construction initiated Montepuez Graphite Project and the advanced feasibility study stage Balama Central Graphite Project.
The Acquisition includes all associated assets, infrastructure, permits, licenses and intellectual property on both projects for a total consideration of AU$12.5 million in a cash and shares deal. The Acquisition is subject, amongst other things, to the mandatory shareholder approval of Battery Minerals and approval of the transaction by the Ministry of Mineral Resources and Energy in Mozambique.
According to Shishir Poddar, CEO of Tirupati Graphite, Mozambique is well-positioned to take advantage of this market boom, with mining operations already expanding across Cabo Delgado where the projects are located as well as Gaza, Manica, Maputo, Nampula, Niassa, Tete and Zambezia.
Evolving opportunities
“With fast evolving opportunities as the electrification of mobility has taken off, and the world is starting its scramble for supplies of critical raw materials of which graphite is one, this is nothing short of a game-changing acquisition for us to build our arsenal and seize every opportunity coming our way to becoming a global leader in flake graphite. Strategically, the Montepuez and Balama Central deposits are world class and will add 152 million metric tonnes at 8.5% TGC of resources to our existing c.25 million tonnes of resources in Madagascar, a c.6X addition on in ground resource tonnage with a c.12X addition on the contained graphite,” said Shishir Poddar.
“Utilising the strengths and advantages of these projects, which are highly complementary to our resource requirements, will help us to mitigate the country risks through diversification whilst further bolstering the foundations which will enable us to capitalise on every opportunity to grow beyond our medium-term development plans (MTDP). With much of the consideration being satisfied in equity, we will welcome our new shareholders from Battery Minerals. Continuing with the construction of the Montepuez Project will be a key focus and with our expertise and history in working similar deposits over decades, we are confident it will result in even better economics for Montepuez and Balama Central, which we have already started working on and will keep the markets updated as we progress,” he added.
