Triton has concurrently executed an agreement with Grafex Limitada to acquire the remaining 40% interest in all of its Mozambique graphite projects.
The placement attracted significant interest and has allowed Triton to introduce a number of new Australian and International investors as shareholders of the company.
Proceeds will be used to accelerate the exploration and development program at the Balama North project, including advancing the current drilling at the Nicanda Hill prospect, ongoing metallurgical test work, scoping, pre-feasibility test work and other activities.
The placement will be completed in a single tranche and is expected to settle on 24 July 2014.
Subject to further exploration success, Triton is seeking to use the funds to delineate an Inferred Resource, as classified on the Nicanda Hill prospect by the fourth quarter of 2014.
In parallel with the drilling campaign, metallurgical and mining studies that are well underway, Triton is expecting to release the results of the scoping study which has been expanded to include the Nicanda Hill exploration results.
This will occur once an Indicated Resource been defined.
Commenting on the placement, Triton Minerals Managing Director Brad Boyle added:
"The significant support we have received from existing shareholders and new institutional and sophisticated investors reaffirms the Company's belief that Balama North is emerging as a world class graphite project.
The Placement now gives us the ability to increase ownership in our projects and rapidly advance the Balama North project and in particular to continue to add value for all of our shareholders.
Putting the Company in a well funded position with the proceeds from the Placement enables us to also maintain an aggressive drilling program at the Nicanda Hill prospect where we presently have two diamond and one RC rig on site. Nicanda Hill contains multiple high grade graphite zones that are being targeted and remains open in all directions."
Triton Moves to 100% of Graphite Projects
In addition, Triton and JV partner Grafex have agreed to terms that allows Triton to acquire the remaining 40% interest in all of the Mozambique graphite projects known as Balama North, Balama South and Ancuabe.
Triton will pay Grafex US$20 Million in a combination of cash and shares in two tranches.
As further consideration, Grafex is entitled to receive five million unlisted Triton options, with an exercise price of $0.70 and term of three years.
Upon the payment of Tranche 1, Triton's interest in the Projects increases to 80%, and upon the payment of Tranche 2, Triton's interest increases to 100%, with Grafex becoming a wholly owned Mozambique operating subsidiary.
Brad Boyle noted:
"Triton being able to acquire 100% of the Mozambique graphite projects is a very significant milestone for the Company.
"This now provides Triton with full control over the Projects and in particular allows the Company to control the rapid advancement and development of the Company's key graphite project at the Nicanda Hill prospect."
Triton is confident of continued exploration success at the Nicanda Hill prospect and will provide further exploration updates to the market as the information becomes available.
Being able to swiftly raise $8.5 million in a single tranche is testament to the company's ability to advance its tier one graphite asset, and a testament to the anticipated size and quality of the deposit.
Ongoing aggressive drilling will provide further near-term newsflow.
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