THE BOURSE WHISPERER: Triton Gold (ASX: TON) has signed a revised formal Joint Venture (JV) agreement with Mozambique company Grafex Limitada.
The revised JV follows the completion of extensive due diligence and negotiations undertaken by Triton over the past few months.
Under the original terms of the JV, Triton could earn up to an 80 per cent interest in the Grafex portfolio of projects over a four year period, this has now been reduced to two years.
The revised JV terms have also removed the first earn-in phase which was 25 per cent.
Triton can now earn straight into a stronger position of 49 per cent interest in the project with the exploration expenditure commitment of just $0.5 million.
The total investment required from Triton over this period has also been reduced from $1.5 million down to $1 million in expenditure commitments and cash payments to Grafex, along with the issuance of up to 15 million ordinary Triton shares to Grafex, subject to some escrow provisions and the issuance of 10 million unlisted Triton options.
In addition, Triton now has a five kilometre Area of Interest (AOI) around all of the project licenses, which it said increases its access to the surrounding land previously identified as prospective by aeromagnetic and radiometric data.
“The new Joint Venture terms now give Triton immediate and greater access to projects in a region that is considered highly prospective for graphite discoveries,” Triton Gold managing director Brad Boyle said in the company’s announcement to the Australian Securities Exchange.
“Through a single transaction, Triton now has the opportunity to earn up to 80 per cent of the existing portfolio of tenements with a number of drill targets already defined.
“With the addition of the AOI around the current project, Triton has the ability to increase their substantial landholding and create new opportunities of identifying further drill targets, thus increasing the Company’s probabilities of locating graphite rich areas.
“The new transaction terms allows us to move quickly into exploration, and has saved both time and money.
“For us to have done this on our own, one project at a time would have added a number of years to the timeline as well as additional costs and regulatory hurdles.”
Grafex is the sole beneficial legal holder of five Graphite prospecting licenses in the Cabo Delgado Province of Mozambique, three of which are still under application.
Overview of the five Mozambique License Application areas and approximate AOI in green.
Last month two of the exploration licenses were approved by the Mozambique mines department.
Triton indicated it has been advised the remaining three license applications should be granted in the near future.
This region has been of recent focus for graphite potential in part due the activities and positive results released by ASX-listed company, Syrah Resources (ASX: SYR).
One of the already approved licence areas is situated close to Syrah’s Balama East deposit, which is approximately three kilometres to the South-West of the boundary of Triton’s North Balama project.
Triton Gold said the signing of the Joint Venture agreement along with the granting of Exploration Licences by the Mozambique government allows it to start work in a region already known for its graphite mineralisation.
Although the country is now in the beginnings of the wet season, the company has already committed to a range of preparatory work which will position it for a more expansive exploration campaign early in 2013, including drill testing at several targets.