Tirupati Graphite PLC Update regarding Acquisition of Suni Resources (0772K)
December 19 2022 - 2:00AM
UK Regulatory
TIDMTGR
RNS Number : 0772K
Tirupati Graphite PLC
19 December 2022
19 December 2022
Tirupati Graphite plc
('Tirupati', 'TG' or the 'Company')
Clarification and update regarding Acquisition of Suni
Resources
Tirupati Graphite plc (TGR.L, TGRHF.OTCQX), the specialist
graphite and graphene company developing sustainable new age
materials, announced on 17 August 2021 its agreement with Battery
Metals Limited to acquire the entire issued share capital of its
subsidiary Suni Resources SA as per the abridged terms in the
announcement and varied subsequently.
Under the Key Transaction Terms in the announcement, the first
bullet point states that:
Subject to the satisfaction of the conditions to the
transaction, the Company will acquire from Battery Minerals 100% of
the issued share capital of Suni Resources (a Mozambique
incorporated subsidiary of Battery Minerals), all related
intellectual property relating to the Montepuez Project and Balama
Central Project, and will be assigned the shareholder loans owed by
Suni Resources to certain Battery Minerals group companies
amounting to c.AU$29 million for a total aggregate consideration of
AU$12.5 million.
Owing to some questions received from investors in relation to
the shareholder loans amounting to c.AU$29 million that will be
assigned to TG by Battery Minerals group companies, the Company
wishes to clarify that:
-- TG will not be assuming any external debt as a result of the
acquisition and it will not have any obligation in respect of
repayment of or the payment of interest in respect of any third
party debt upon completion as a result of the acquisition of Suni
Resources; and
-- The debt assigned to TG by Battery Minerals group companies
shall on completion become an intra group debt within the enlarged
TG group owed by Suni Resources to TG.
The Company further confirms that arrangements have been
progressed for the provision of the Bank Guarantee ('BG') to be
completed which will allow for the last steps towards closing of
the acquisition of Suni Resources to be progressed.
Shishir Poddar, CEO of Tirupati Graphite, said:
"We felt duty bound to correct the misconception that the
Company is acquiring any external debt through the acquisition of
Suni Resources. The agreed consideration is the only cost to
Tirupati for acquiring these transformational, ready-to-construct
projects with globally significant resources.
"Without taking on any debt, TG will acquire the Balama Central
and Montepeuz projects in Mozambique, which are both fully licensed
for construction to >150,000 tpa flake graphite production
capacity and which have already benefited from significant
investment to this date."
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 flake graphite company, a
material vital in the energy transition economy. 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 as per the Company's modular medium-term
development plan.
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END
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