- Battery Minerals (BAT) agrees to sell its Mozambique Graphite Projects to Tirupati Graphite for $12.5 million in cash and shares
- By purchasing all shares in Suni Resources SA, a subsidiary of Battery Minerals and held by Rovuma, Tirupati will take over the Montepuez and Balama projects
- BAT will receive a cash payment of $1.5 million and Tirupati ordinary shares valued at $11 million, subject to government and shareholder approval
- The company says the shareholding will give it free carried exposure to the two projects and add exposure to Tirupati’s other assets
- BAT shares are trading in the grey at 1.5 cents at 10:38 am AEST
Battery Minerals (BAT) has agreed to sell its Mozambique Graphite Projects to Tirupati Graphite for $12.5 million in cash and shares.
The acquisition agreement will see the London stock exchange listed company becoming the owner of the Montepuez and Balama Graphite Projects through the purchase of all shares in Suni Resources SA, which is a subsidiary of Battery Minerals and held by Rovuma.
While BAT hasn’t given a reason to the sale, in its June quarterly report it noted disruptions at the projects due to COVID-19 restrictions, including key funding development activities being postponed and reduced staffing.
The company said it would continue to focus on its Australian mineral exploration properties in the WA Kimberley region and western Victoria, where it is currently implementing expanded exploration programmes.
In today’s announcement, the company said Tirupati was a “natural owner” of projects such as the two Mozambican graphite projects given its experience in Africa.
Specifically, Tirupati is a graphite producer and developer with projects in Madagascar, as well as advanced materials development businesses in India.
The sale will see BAT receive a cash payment of $1.5 million and Tirupati ordinary shares valued at $11 million.
Through its shareholding, Battery Minerals will maintain a free carried exposure to the two projects and add exposure to Tirupati Graphite’s other production and development assets.
Additionally, BAT said it would gain exposure to graphene and graphene based advanced materials being developed by Tirupati.
The sale is subject to Mozambican government approval and approval from Battery Minerals’ shareholders.
BAT shares are trading in the grey at 1.5 cents at 10:38 am AEST.