- Graphite producer Triton has received another $2.7 million to fund its project in Mozambique
- The company is receiving the funding from Chinese state-owned tech company Jinan Hi-Tech, who has previously committed $21.5 million
- A maiden ore reserve at the site forecast the project to hold 24.9 million tonnes at 6.2 per cent total graphite content
- Triton's share price is up 2.7 per cent today, currently sitting at 3.8 cents per share
Graphite producer Triton has received another $2.7 million in funding from a Chinese state-owned tech company, Jinan Hi-Tech.
In June, Jian Hi-Tech committed $19.5 million in funding to Triton and in July added a further $2 million. The funding will be used to develop the Ancuabe Graphite Project in East Africa.
The company said Jian Hi-Tech's contribution will assist financially with mining regulations in Mozambique and funding construction as it begins.
Ancuabe is located in the historically prospective Cabo Delgado region, Mozambique. A maiden ore reserve at the site forecast it to hold 24.9 million tonnes at 6.2 per cent total graphite content.
The global graphite market is expected to grow over six per cent in the next six years. This is predominately due to graphite's growing role in producing lithium-ion batteries which are used in electric vehicles.
The demand for rechargeable lithium batteries continues to increase, especially in the vehicles sector which continues to record growth each year.
Graphite producers globally are capitalising on the commodity's growing worth, which currently has an industry value of $25.7 billion (US$17.62 billion).
At its Mozambique project, Triton is focusing on developing two graphite mineral deposits. A definitive feasibility study forecasts the project to have a 27-year lifespan based on producing 60,000 tonnes of graphite concentrate each year.
Mozambique has become a hot spot for mining graphite as companies globally hone in on the nation's rich and plentiful deposits. The Mozambican Government is supporting mining ventures on its land as a means to stimulate its economy.
Triton's Managing Director, Peter Canterbury, explained the company is looking to break into the fire retardant products sector through its graphite production.
Before receiving commitments for the initial $19.5 million investment from Jinan Hi-Tech, the company spent a lot of time researching the flame retardant building products market.
After the state-owned tech company invested Peter said it is clear "the massive potential of the Ancuabe Graphite Project to supply the flame- retardant building industry."
Following realising to the market its additional funding, Triton's share price closed 2.7 per cent higher. Shares in the company are currently trading for 3.8 cents each.