Mozambique: Tirupati Graphite successfully completes acquisition of Suni Resources

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Mozambique: Tirupati Graphite successfully completes acquisition of Suni Resources

9:55 CAT | 13 Apr 2023

Screen grab: Proactive Investors

Tirupati Graphite PLC said it has successfully completed the acquisition of Suni Resources SA, a Mozambique-incorporated subsidiary of ASX-listed Battery Minerals Limited on 1 April 2023.

In a statement, Shishir Poddar, executive chairman of Tirupati Graphite (TG), commented: “We are delighted to announce the completion of the acquisition of Suni Resources. This strategic acquisition will see us materially strengthen our existing portfolio through the addition of two world-class graphite assets located within one of the largest commercially operating global flake graphite projects.

“As the global need for critical minerals increases, the flake graphite market is forecast to reach 5 million tonnes per annum of new demand by 2030. This acquisition positions Tirupati at the forefront of the market and enables us to accelerate the production of these materials essential to the energy transition.”

Poddar added: “Importantly, through acquiring the Balama Central and Montepuez projects in Mozambique, we are diversifying our locations, providing access to a new region as well as providing buyers with an additional source of graphite outside of China, where global supply is currently heavily concentrated.

“Moving forward, our focus will be on optimising processing technology, flow sheet and the investment required for the projects, continuing the construction of the first module at Montepuez, and drawing on our decades of expertise and history of building flake graphite projects. As a reminder, TG’s capital intensity and operating costs are within the bottom quartile of the industry and the completion of this acquisition further allows TG to robustly engage with the global energy storage markets.”

Our EC @ShishirPoddar highlights growing demand for #criticalminerals like #flakegraphite in the #energytransition. With completion of our Suni Resources acquisition, Tirupati is now poised to be a leader in this market, accelerating the production of these essential materials. pic.twitter.com/CMaGmiekNk

— Tirupati Graphite (@Tirupatiuk) April 11, 2023

The specialist graphite and graphene company said the acquisition includes all assets, infrastructure, permits, licences, and intellectual property associated with the construction initiated Montepuez Project and the fully permitted Definitive Feasibility Study ready, Balama Central Project in Mozambique held by Suni.

Tirupati paid a sum of A$5,428.14 in cash at completion under the share purchase agreement (SPA) as well as a sum of A$500,000 (around £0.27mln) in cash, paid on 25 January 2023, under an IP assignment. It also issued of 2,018,944 ordinary shares of £0.025 each to Battery Minerals Limited at completion covering a sum of A$994,571.86 (£539,058) at an issue price of £0.267 per ordinary.

It said payment of a sum of A$2,375,000 (around £1,260,150) has also been made under variations of the SPA to facilitate the payment of capital gains tax by Battery Minerals Limited in connection with the disposal of Suni in consideration for which Suni agreed to a A$1,250,000 (around £677,500) reduction in the value of the consideration shares from A$11,000,000 (around £5,962,000) to A$9,750,000 (around £5,284,500), as well as to Tirupati retaining the right to the VAT refunds due to Suni for historical spends amounting to about A$1.5mln (around £810,000).

#TGR has acquired #mining licenses for #Montepuez & Balama Central Projects, with JORC 2012 reserves & resources totalling 152.5 million tons of #flakegraphite. The Montepuez project is advanced stage with construction and procurement initiated. https://t.co/z2btUDziKn pic.twitter.com/h526Rw96DW

— Tirupati Graphite (@Tirupatiuk) April 7, 2023