From Peters interview we know 'China Merchant Bank' have sent a pre-approval or equivalent for a minimum of 85% of Ancuabes capex..With the potential for more than 85% actually..At concessional rates.
What makes Jinans money attractive to Triton when you already have a major bank agreeing to pretty much fully fund your project at concessional interest rates? And potentially slowing the financing process down?
I believe Jinan have said to Triton..Allow us to have a piece of Triton and we will facilitate a mutually beneficial partnership with 'XGC' all but guaranteeing Triton's long term viability and success not just with financing but the next 5-10 years demand and sustainability.
So why not Triton just go straight to 'XGC'? Because the only thing more attractive to 'XGC' than a stable supply of premium large flake graphite for their broad operations as one of China's largest finished graphite product manufacturer's is a buyer ready at the end of it all..That buyer being Jinan who hold that card over 'XGC' ensuring their involvement in financing.
So basically it's my theory..
Triton allow Jinan a 34% stake in the company and participation in financing in return for facilitating a deal with 'XGC'...The 34% stake in Triton allows Jinan to have a greater say over where our graphite is going and at what price..Jinan say to 'XGC' you buy our graphite at concessional prices..We buy the finished product at concessional prices..Everyone wins..Triton are financed and off-takes are insured at fair prices for all parties..'XGC' secures stable and price competitive supply of large flake graphite and get a major point of sale on the other end of it all..Finally Jinan win with a stable source of price competitive finished graphite materials to supply their state initiative infrastructure projects and a stake in a financially viable graphite company with dividends down the track to further offset their already concessional prices for product with 'XGC'.
This is just my theory..There may be more to the puzzle...Maybe I'm looking at the puzzle completely wrong?
Hi KL...No I'm not paid by Triton but thank you for the compliments of my posts..I've never met any Triton staff or board member..Only spoken to them via phone..I'm just another hopeful shareholder like everyone that has waited too long.
