On 7 December 2018, Triton Minerals Limited’s (ASX: TON) stock was put on a trading halt at the request of the company and the stock will not be trading until the earlier of the commencement of normal trading on 11 December 2018 or when the announcement is released to the market in relation to the potential capital raising.
On another release on ASX, the company has issued supplementary prospectus and mentioned that the director of the company has decided to withdraw the offer. It further updated, that the offer is now closed and the timetable for the offer as set out in the prospectus earlier is no longer in effect. The expiry date on the prospectus is amended to be December 7, 2018 and no securities will be issued further under the prospectus, and the company will not be accepting any more applications.
Any applications received will not be processed, and any money received on application by the company pursuant to the prospectus will be refunded in accordance with section 722 of the Corporations Act.
As per the objective of the company is concerned, they are aiming to become a leading global producer of high-quality graphite and related metals and a provider of graphite value-added solutions that will generate sustainable returns to the security holders.
Grafex Limitada (Grafex) holds the registered Mozambique exploration licences. Triton entered into a joint venture agreement with this Mozambican registered entity, in October 2012, post which it became an 80% owner of the company by the end of 2014. However, in March 2018 Triton announced to have a 100% economic interest in shares of Grafex and the Mozambican projects.
Triton is mainly focused on its production from its Ancuabe Graphite Project. The company did independent test work to identify that Ancuabe’s large flake and high concentrate graphite is a key driver for the company’s positive outlook going forward. It aims to be a market leader in the expanding environment of the graphite market. The company is undergoing initial activities, and their construction is likely to start in the first half of 2019 with first graphite production in the first half of 2020.
The graphite market is about to grow significantly going forward. The Chinese producers are experiencing huge supply pressures, since their reserves are diminishing and more importantly, they have a lower grade and poor flake size. They are also experiencing environmental and legislative pressures from the Government. The key drivers for the global expandable graphite market growth have been Technology and environmental concerns. The expandable graphite is primarily used in flame retardant building materials and for the lithium-ion battery market. Triton is better placed with China experiencing supply concerns, and Triton’s quality is perfect for both these markets.
Meanwhile, the share price of the company has fallen 42.47% in the past six months as on 6 December 2018. The company has a last traded price of $0.042 with a market capitalization of circa $38.94 Million.
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