Tirupati Graphite PLC (LSE:TGR) (LSE:TGR), a specialist graphite producer and graphene and advanced materials developer, has agreed to buy strategic graphite projects in Mozambique from ASX-listed Battery Minerals Ltd for A$12.5mln (GBP6.6mln) in a cash and shares deal.
Tirupati will acquire Suni Resources SA, the holder of the Mozambique portfolio of graphite assets of Battery Minerals including two world-class graphite projects: Montepuez and Balama Central.
The two complementary graphite deposits, spread over a combined 18,500 hectares permit area, will add mineral resources of more than 152 million tonnes at 8.5% total graphite content (TGC) to Tirupati’s JORC-compliant mineral resource base.
Montepuez is a high-grade flake graphite project currently in the construction phase, while Balama Central is an advanced stage feasibility ready project located in an established graphite producing district.
“Every forecast of flake graphite market we have come across rate the market size exceeding 5 million tonnes per annum of new demand by 2030, which dwarfs our current buildout to 84,000 tpa capacity planned at our Madagascan projects,” said Shishir Poddar, chief executive of Tirupati. “With this acquisition, we take a significant leap forward in our mission of becoming a leader to meet the global needs for this critical material and contributing to the green aspirations of the world.
“With much of the consideration being satisfied in equity, we will welcome our new shareholders from Battery Minerals. Continuing with the construction of the Montepuez project will be a key focus and with our expertise and history in working similar deposits over decades, we are confident it will result in even better economics for Montepuez and Balama Central, which we have already started working on,” he added.
The acquisition includes all associated assets, infrastructure, permits, licenses and intellectual property on both projects.
The deal requires approval from shareholders in Battery Minerals as well as approval by the Ministry of Mineral Resources and Energy in Mozambique.
“Shishir and his team at Tirupati have developed and demonstrated world leading graphite industry capability over the last 40 years,” said David Flanagan, executive chairman of Battery Minerals. “They are uniquely positioned with existing operations and downstream processing facilities that are globally competitive making them an excellent partner to commence these projects in the shortest possible time.”