Tirupati Graphite PLC Agreement to Acquire Additional Madagascar Permits (6922Y)
September 08 2022 - 2:01AM
UK Regulatory
TIDMTGR
RNS Number : 6922Y
Tirupati Graphite PLC
08 September 2022
08 September 2022
Tirupati Graphite plc
('Tirupati', 'TG' or the 'Company')
Agreement to Acquire Additional Permits in Madagascar
Tirupati Graphite plc (TGR.L, TGRHF.OTCQX) is pleased to
announce that its subsidiary Tirupati Madagascar Ventures SARL
(TMV) has entered into agreement to acquire three additional mining
permits in Madagascar, covering a total area of 31.25km(2) and
located in the vicinity of the Company's existing projects in the
country. The consideration agreed for the acquisition is a total of
MGA 800 million (c.GBP167,000) to be paid in cash upon milestones
in the process of completing the transfer of the permits to the
Company. The transfer requires approval by the ministry of Mineral
Resources and application thereof is in the process of being made
to the Bureau du Cadastre Minier de Madagascar (BCMM).
Due to the proximity to its existing operations, the Company
believes it can progress activities in the acquired projects in a
timely and cost-effective manner alongside its other Madagascan
projects. While no JORC 2012 compliant mineral resource statement
is available for the permits, historical geological data and
initial ground assessments made by the Company suggest that the new
permits could have the potential to add two or three 18,000 tonnes
per annum (tpa) modular facilities for flake graphite production.
This could therefore significantly add to the Company's currently
planned 84,000 tpa capacity across the Vatomina and Sahamamy
projects.
Under the agreement, TMV retains the right to conduct studies in
the areas during the process of transfer of the permits. The
process of transfer is same as was executed by TMV successfully for
the acquisition of the Vatomina project and the Company's in
country team is well versed for progressing the transfer process.
There is however no guarantee on if and when the transfer shall
complete.
The acquisition of these permits aligns with the Company's
strategy to continue to acquire resources so as to facilitate
growth of its primary flake graphite operations to c.8% of global
demand by 2030, estimated to be in the range of 400,000tpa. The
Company considers acquiring additional resources in the vicinity of
its current projects in Madagascar as a vital base to facilitate
its strategy while it continues to progress its efforts for
completing the acquisition of other projects in a second
location.
Shishir Poddar, Executive Chairman of Tirupati Graphite,
said:
"We are pleased to have agreed to acquire additional permits
near our existing projects in Madagascar. It is our priority to
increase ground in Madagascar alongside other locations to preserve
our long-term capacity targets and resource security, and these
acquisitions can help us enhance our overall output from Madagascar
by up to an additional 48,000 tpa in due course.
"It is our stated strategy to develop capacity of circa 8% of
the global flake graphite market or 400,000 tpa by 2030. Our
intention is for c.50% of that capacity to be in Madagascar to take
advantage of the favourable flake size distribution its deposits
possess. Acquisitions like this will be instrumental in enabling us
to achieve our aspiration to become one of the most significant
players in graphite as global demand increases for this critical
energy transition mineral."
ENDS
For further information, please visit https://www.tirupatigraphite.co.uk/ or contact:
Tirupati Graphite Plc
Puruvi Poddar - Chief of Corporate & Business admin@tirupatigraphite.co.uk
Development +44 (0) 20 39849894
Optiva Securities Limited (Broker)
Ben Maitland - Corporate Finance +44 (0) 20 3034 2707
Robert Emmet - Corporate Broking +44 (0) 20 3981 4173
FTI Consulting (Financial PR) +44 (0) 20 3727 1000
Ben Brewerton / Nick Hennis / Kelly Smith tirupati@fticonsulting.com
About Tirupati Graphite
Tirupati Graphite Plc is a specialist graphite and graphene
company. The Company places a special emphasis on "green"
applications, including renewable energy and energy efficiency,
energy storage and thermal management and is committed to ensuring
its operations are sustainable as well.
The Company's operations include primary mining and processing
in Madagascar, where the Company operates two key projects,
Sahamamy and Vatomina; 12,000 tpa installed capacity of
high-quality flake graphite concentrate with up to 96% purity is
currently being produced and sold to customers globally, planned to
increase to 84,000 tpa by end 2024 as per the Company's modular
medium-term development plan.
The Company has an acquisition agreement, subject to regulatory
approvals, with Tirupati Speciality Graphite Private Limited
('TSG'). TSG operates and is developing a suite of speciality
graphite for use in hi-tech applications like lithium-ion
batteries, fire retardants, thermal management, and composites. It
also operates a technology centre developing advanced materials
including graphene and its applications, and mineral processing
technology on commercial basis. The Company is working on various
possibilities in this respect as announced by RNS on 11 July
2022.
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