THE BOURSE WHISPERER: Triton Minerals (ASX: TON) will be sitting back over the Easter long weekend wiping lots of chocolate from a very wide grin.
The company’s share price went boom on Wednesday after it announced it has struck a binding off-take agreement with Chinese graphite products specialist Yichang Xincheng Graphite Co., Ltd for Triton’s Mozambique graphite project.
Triton has exclusive rights to supply graphite to YXGC from Mozambique as well as Madagascar, Malawi and Tanzania.
The deal will result in minimum total contract revenue of US$2 billion assured by a floor price of US$1,000/tonne, with the full contract value determined by the future sale price as set by the applicable market price.
“Yichang Xincheng Graphite Co., Ltd is globally renowned as a supplier of a diverse range of high quality, high-tech expanded graphite products,” Triton Minerals managing director & CEO Brad Boyle said in the company’s announcement to the Australian Securities Exchange.
“This is a very special day for Triton as this binding commercial agreement is with a graphite specialist organisation that has mined, manufactured and sold expanded graphite products for nearly 20 years.”
Triton shares burst out of the blocks at 61 cents, shooting up to 71 cents, before settling back around the 52 cent mark (around 25 cent gain for the day) at the time of writing.