ASX Media/Announcement
17 July 2014
TRITON COMPLETES $8.5 MILLION PLACEMENT TO ACCELERATE BALAMA NORTH PROJECT
Highlights:
Triton to accelerate exploration activity and studies at Balama North following a successful $8.5 million capital raising
Single tranche placement leaves Triton well-funded to advance Balama North
Triton has concurrently executed an agreement with Grafex Limitada to acquire the remaining 40% interest in all of its Mozambique graphite projects.
Triton Minerals Limited (ASX: TON, "Triton", "the Company") is pleased to announce that it has successfully completed a placement to institutional and sophisticated investors of 17 million fully paid ordinary shares at a price of $0.50 per share to raise $8.5 million ("Placement). GMP Securities acted as Lead Manager and Sole Bookrunner to the Placement that attracted significant interest and has allowed Triton to introduce a number of new Australian and International investors as shareholders of the Company.
Proceeds from the Placement will be used to accelerate the exploration and development program at the Balama North project, including advancing the current Diamond and RC drilling at the Nicanda Hill prospect, ongoing metallurgical test work, scoping, pre-feasibility test work and other activities.
The Placement will be completed in a single tranche under ASX Listing Rule 7.1 and is expected to settle on 24 July 2014.
Commenting on the Placement, Triton Minerals Managing Director Brad Boyle said: "The significant support we have received from existing shareholders and new institutional and sophisticated investors reaffirms the Company's belief that Balama North is emerging as a world class graphite project.
The Placement now gives us the ability to increase ownership in our projects and rapidly advance the Balama North project and in particular to continue to add value for all of our shareholders.
Putting the Company in a well funded position with the proceeds from the Placement enables us to also maintain an aggressive drilling program at the Nicanda Hill prospect where we presently have two Diamond and one RC rig on site. Nicanda Hill contains multiple high grade graphite zones that are being targeted and remains open in all directions.
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278 Barker Road, SUBIACO WA 6008 P: 61 8 6489 2555 F: 61 8 9388 1252 (ACN 126 042 215) www.tritonmineralsltd.com.au
Subject to further exploration success, Triton is seeking to use the funds from the Placement to delineate an Inferred Resource, as classified by the JORC 2012 guidelines, on the Nicanda Hill prospect by the fourth quarter of 2014.
In parallel with our drilling campaign, metallurgical and mining studies that are well underway, Triton is expecting to release the results of the scoping study which has been expanded to include the Nicanda Hill exploration results, once an Indicated Resource, as classified by the JORC 2012 guidelines has been defined."
Triton Acquires 100% of the Graphite Projects
Triton is also pleased to announce that after recent discussions with Triton's joint venture partner Grafex Ltd (Grafex), Triton and Grafex have agreed to terms that allows Triton to acquire the remaining 40% interest in all of the Mozambique graphite projects known as Balama North, Balama South and Ancuabe (the "Projects").
Transaction Terms
Late on 16 July 2014, Triton and Grafex executed a binding agreement, which allows Triton to acquire the remaining 40% interests in the Projects on the following terms:
Triton shall pay Grafex US$20 Million in a combination of cash and ordinary fully paid
Triton shares.
The payment is structured in two tranches. Each tranche being US$5 million cash and US$5 million in Triton scrip. The first tranche payment is due fourteen (14) days after the settlement of the Placement and the second tranche is payable 6 months thereafter.
As further consideration, Grafex shall be entitled to receive five (5) million unlisted
Triton options, with an exercise price of $0.70 and term of three (3) years.
Upon the payment of Tranche 1, Triton's interest in the Projects shall increase to an eighty (80%) percent interest.
Upon the payment of Tranche 2, Triton's interest in the Projects shall increase to
100% with Grafex becoming a wholly owned Mozambique operating subsidiary of
Triton.
Commenting on the transaction, Triton Minerals Managing Director Brad Boyle noted "Triton being able to acquire 100% of the Mozambique graphite projects is a very significant milestone for the Company. This now provides Triton with full control over the Projects and in particular allows the Company to control the rapid advancement and development of the Company's key graphite project at the Nicanda Hill prospect."
Triton is extremely confident of continued exploration success at the Nicanda Hill prospect and is looking forward to providing further exploration updates to the market, as the information becomes available.
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278 Barker Road, SUBIACO WA 6008 P: 61 8 6489 2555 F: 61 8 9388 1252 (ACN 126 042 215) www.tritonmineralsltd.com.au
THIS ANNOUNCEMENT EFFECTIVELY CEASES THE TRADING HALT REQUESTED BY THE COMPANY ON 15 JULY 2014. THE COMPANY IS NOT AWARE OF ANY REASON WHY THE ASX WOULD NOT ALLOW TRADING TO RECOMMENCE IMMEDIATELY.
Regards
Brad Boyle Managing Director Triton Minerals Ltd
Brad Boyle Michael Brady
Managing Director General Counsel & Company Secretary
Tel: + 61 8 6489 2555 Tel: + 61 8 6489 2555
Email: [email protected] Email: [email protected]
Forward-Looking Statements
This document may include forward-looking statements. Forward-looking statements include, but are not necessarily limited to, statements concerning Triton Minerals Limited's planned exploration program and other statements that are not historic facts. When used in this document, the words such as "could", "plan", "estimate" "expect", "intend", "may", "potential", "should" and similar expressions are forward- looking statements. Although Triton Minerals Limited believes that its expectations reflected in these are reasonable, such statements involve risks and uncertainties, and no assurance can be given that actual results will be consistent with these forward-looking statements.
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278 Barker Road, SUBIACO WA 6008 P: 61 8 6489 2555 F: 61 8 9388 1252 (ACN 126 042 215) www.tritonmineralsltd.com.au