Daz
It’s easy to take a shot at Triton shareholders, but you should explain to other people dropping in to read the Triton forum the whole story and not just a snap shot “shareholders are to blame, not directors.”
You need to go back and listen to the Crux interview 16th August 2019 and the story with the Jinan partnership. You might then also agree why shareholders came to the decision.
From PC’s mouth:
We have spent a long time in china discussing the financing structure. Jinan agreed to support financing for the whole project in 2 forms:
Part of the EPC contract signed with MCC International gave us access to $US40M concessional financing at around 5-6% with China Merchant Bank (LOI signed)
Jinan Hitech owns a leasing company and are going to finance all the equipment through the leasing company worth $US35M
Between the two brings us to $US75M plus the $US7M raised in selling 14% of the company. The Capex for the mine was $US85M and there was no further need in going to the market to finance this project.
The only graphite project that is fully permitted and financed and will be the next high purity, large flake graphite producer in town. Long life project with excellent economics on the project. Opportunities once finance is approved to enjoy the opportunities that the project presents.The advantage we have it is only a 18 month construction period and an opportunity to hit the market when the price of graphite takes off.
We don’t need to go to market to raise anymore funds. We wont have to issue a whole lot of script that is going to be a wash on the market. The shares of Jinan wont be traded and we are going to have a whole tighter structure.We started negotiating with Jinan about a year ago. They did a detailed due diligence and gone through approvals. They (Jinan) have a very good understanding where the project sits, they wanted to see the mining concession to be in place and now it’s in place and ready to go.
They (Jinan) will have equal board membership but no control of the board and anything that doesn't get through would be taken to the shareholders. In china they would normally take control of the board. They are very much a partner in this.
Jinan have a longer term view they want to do value adding with the remainder of the material into the market place.
Jinan want to value add later on further processing plants in Mozambique. The interviewer asked if that will it be Triton and the Puppet replied we haven't had that discussion yet.
The interviewer finished off by asking PC to tell current investors why its going to be OK and to tell new investors why they should come in.
PC replied: “we are going to be the next graphite producer in the world, 60000T of high value, large flake graphite, production in near terms-18 months, and we have now put a structure in place that has essentially financed it, it is fully permitted, has a EPC contractor ready to run that's experienced in there, a onus team that is ready to run, we have off-take agreements with over over 50% of production. This is now real, Triton will be now a producer and a very exciting time to invest in Triton, but its also a time you see the graphite market much more visible in terms for demand that is going to come and for higher than average growth rate over the next 10-15 years.
This is the narrative that shareholders were sold by the board. We were lured in believing the mine was going to be built in the very near future. I believed when PC said he had a financing structure in place it would be in the form of a binding contract that requires the party to perform the obligation which they have expressly and implied to undertake. If the party (Jinan) failed or refused to discharge its expressed or implied obligation we should be awarded damages for failure to perform the contractual obligations according to the agreement. Not to have some clauses in a contractual agreement is negligence.
Bear
