what happened to this only last year FULLY FUNDED ?
TRITON SECURES A$20M PROJECT FUNDING
HIGHLIGHTS Equity Placement Facility provides Triton access to $20M Triton extends timeline to acquire remaining interest in Grafex to 2016 Triton now fully funded to complete studies and advance the Nicanda Hill deposit Triton Minerals Limited (ASX: TON, Triton, Company) is pleased to announce that it has entered into a binding agreement with Long State Investments Limited (LSI), to provide the Company a funding facility for up to A$20 million, over the next two years (LSI Facility).
The LSI Facility provides Triton full discretion to access the facility and should the Company do so, the Company has the ability to set the share issue price, determine the amount of funds raised through placement tranches and when the placement of shares will occur.
Further, the LSI Facility can be utilised by Triton at any time during the 2 year term or terminated early without penalty. Further, there are no restrictions or penalties imposed upon the Company if it raises additional capital through other means.
Triton has obtained the LSI Facility to provide the Company certainty and security in being able to fund its current and future activities. The LSI Facility offers Triton a funding solution that is intended to be used in conjunction with the more traditional methods of raising capital in the open capital markets.
Importantly, irrespective of the current market conditions, the Company now has secured the funding to continue with the rapid development of the Nicanda Hill graphite and vanadium deposit; which allows Triton to focus on advancing discussions with potential offtake partners, completing the Environmental Study and completing the Definitive Feasibility Study by the end of 2015.
LSI is a Hong Kong based investment group with a strategic focus on energy, mining and other growth-oriented sectors. LSI's management has over 50 years of collective experience as a group and completed over 100 investments and financings worldwide.
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Material terms of the LSI facility are summarised in Schedule 1 of this announcement. Triton’s Managing Director & CEO Brad Boyle said: "Obtaining the LSI facility is a great outcome for the Company, as, despite current market condition, it provides Triton the security and ability to continue with the rapid development of the Nicanda Hill deposit.
Triton is very pleased to be working closely with LSI, and with their strong support, we are able to move closer to becoming a market leading, high quality, low cost graphite and potentially vanadium producer.
I am confident in Triton’s ability to deliver on both its short and longer term goals and the world class quality of the Nicanda Hill deposit, such that I have pledged a substantial portion of my own personal shareholding in the Company as surety for the LSI facility, under the requirements to provide security shares."
"Triton is an outstanding investment opportunity for us," said Philip Ho, Managing Director at LSI. "The Company’s Nicanda Hill deposit in northern Mozambique contains the world’s largest known graphite and vanadium resource, which hosts multiple high grade graphite zones and contains good quality medium and coarse flake graphite. The Nicanda Hill graphite deposit is a world class project in its own right, however, we feel the potential of the Balama South and Ancuabe projects will further Triton’s position as a leading graphite producer in the future. We are eager to assist Triton in meeting its ongoing financing needs and we look forward to a long-term relationship with the Company."
TON Price at posting:
6.1¢ Sentiment: None Disclosure: Held
