ASX-listed Triton Minerals has entered into a share sale and purchase agreement (SSAP) with Chinese company Shandong Yulong Gold through its wholly-owned subsidiary NQM Gold 2 for an interest in the Ancuabe graphite project, in Mozambique.

This follows the company’s previously announced memorandum of understanding (MoU) for the sale of at least 70% of its interests in the entities that hold the Ancuabe project, including 70% of its interest in the intellectual property and drill core assets relating to the Nicanda Hill and Nicanda West projects, as well as 70% of its interest in the Cobra Plains mining concession.

This is expected to result in near-term cash flow of $17-million from three staged payments comprised of a $2.55-million deposit paid in July, $5.95-million upon precompletion by December 31, and $8.5-million upon final completion by February 28.

Upon precompletion, Yulong will be granted three additional directors to the boards of Kwe Kwe Graphite and Grafex.

Triton will initially retain a 30% joint venture (JV) interest in the Mozambique graphite assets, which will provide Triton with continued exposure to the graphite market. The company expects to use the sale proceeds from the transaction to fund its contribution to this JV.

The company said that, owing to payments receivable, it expected to be well-funded for the start of exploration work for the recently acquired Aucu copper/gold project, in Tete, Mozambique, as well as to assess other value-accretive acquisitions in the battery minerals and resource sector in Mozambique and Australia. The funds would also be used for working capital purposes.

Triton said the execution of the SSAP marks a significant milestone in its strategic asset sale process, aligning with the company’s focus on unlocking shareholder value and advancing its corporate objectives.

“Triton remains committed to its Mozambique graphite projects and is confident that this partnership with Yulong will unlock significant value for shareholders. This strategic collaboration is expected to ensure the successful development and commercialisation of Triton’s high-quality graphite resources.

“Following completion of the transaction in February, Yulong and Triton will commence jointly working on the development and operational strategies for Triton’s flagship Ancuabe graphite project,” the company said.

Triton recently announced approval of the environmental licence for the Ancuabe graphite project, thereby advancing the project towards production.

"We are excited to take this significant step forward with Shandong Yulong and NQM. This agreement underlines our shared commitment to the Ancuabe graphite project and positions Triton as a key player in the global graphite market.

“The addition of the Aucu gold and copper project marks [a] new chapter for Triton, and we look forward to identifying further opportunities that align with our vision of growth," Triton executive director and COO Adrian Costello said on December 9.