Graphite finds market THE AUSTRALIANJANUARY 15, 2016 12:00AM...

Graphite finds market
THE AUSTRALIANJANUARY 15, 2016 12:00AM
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Bridget Carter

Mergers and Acquisitions Editor
Sydney
Gretchen Friemann

Mergers & Acquisitions Editor
Sydney

Graphite remains one of the few corners of the junior resources market finding any kind of traction with investors as rivalry between the various players grows increasingly tense.

Perth-based junior Mozambi Resources is understood to be preparing to unveil the largest graphite resource find to date in Tanzania, an southern African nation that has become a hive of graphite exploration activity.

ASX-listed rival Magnis Resources presently owns the largest graphite resource in the country in the form of its Nachu deposit, just to the north of Mozambi’s ground. Magnis founder Stephen Hunt recently left the company to join Mozambi, so it would be understandable if there’s a bit of tension between the two groups.

Magnis can comfort itself with the fact it still has a much larger valuation than Mozambi, with a market cap of more than $130 million, compared with $22m.

Mozambi’s shares have climbed from 1.2c to 4c since it switched to graphite exploration last year.

Additional reporting: Paul Garvey