Battery Minerals agrees to sell Mozambique Graphite Projects to Tirupati Graphite

 Battery Minerals agrees to sell Mozambique Graphite Projects to Tirupati Graphite

Battery Minerals agrees to sell Mozambique Graphite Projects to Tirupati Graphite.

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Australian Securities Exchange listed Battery Minerals (BAT) has agreed to sell its Mozambique Graphite Projects to Tirupati Graphite for $12,5 million in cash and shares.

Tirupati Graphite will acquire the Montepuez and Balama Graphite Projects in Mozambique.

 “Battery Minerals Limited (ASX: BAT) (“Battery Minerals” or “the Company”) is pleased to advise that it has entered into agreements, together with its subsidiary Rovuma Resources Limited (“Rovuma”), to sell its Mozambique graphite assets, through the sale of all the shares in its subsidiary Suni Resources SA, to the London Stock Exchange listed company, Tirupati Graphite plc (“Tirupati Graphite”) for a total aggregate consideration of $12.5 million in cash and shares,” said David Flanagan Executive Chairman for Battery Minerals Limited  in a statement.

Tirupati Graphite is listed on the standard segment of the main board of the London Stock Exchange (“LSE”) with a market capitalization of A$183 million and is accredited with the Green Economy Mark by the LSE.

 Tirupati Graphite is a fully integrated, revenue generating, specialist graphite and graphene producer ,an advanced materials developer with primary mining and processing projects in Madagascar and speciality graphite manufacturing and graphene and advanced materials development businesses in India.

Tirupati Graphite’s founders and management team have extensive experience in the graphite industry and developing projects.

Under Tirupati Graphite’s management its Madagascan primary graphite operations, which are under modular development, have demonstrated 50% operating margin.

Battery Minerals will receive Tirupati Graphite ordinary shares valued at $11 million and cash of $1,5 million.

Execution of the Montepuez graphite project will now become a key priority for Tirupati Graphite, which will expand its production capacities, diversify resources and product basket central to capture growing market opportunities from the green economy.

As such Battery Minerals will become a significant shareholder second only to the founder group of Tirupati Graphite.

Completion of the transaction is subject to Mozambican government approval and Battery Minerals’ shareholder approval.

Battery Minerals will continue to focus on its Australian mineral exploration properties in the WA Kimberley region and Western Victoria where it is currently implementing expanded exploration programmes.

Tirupati Graphite is active and experienced in Africa and in project execution being the only graphite producer listed on the LSE and is fully integrated across the entire graphite value chain.

The company is listed on the standard segment of the LSE main board with a market capitalization of ~$183 million and has sourced approximately $39 million in expansion funding primarily from UK investors with continued strong share liquidity.

The   company has   a strong history and heritage and are specialists in graphite having developed market leading and proven design, engineering, development and marketing capabilities in the graphite industry over the last 40 years.

Battery Minerals will get an exposure to an operating cash flow positive producer at Sahamamy in Madagascar and imminently also from Vatomina, is planning to increase production to 84,000tpa of high-quality flake graphite concentrate by 2024.

Fidelity Hamilton Mhlanga

Fidelity Hamilton Mhlanga has been writing finance and business news over the past 5 years. He earned a BSC in Media and Society Studies and Masters of Development Studies from Midlands State University, in Zimbabwe. He follows mining, insurance, banking and energy stories. He is passionate about development and growth.

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