REG - Tirupati Graphite - Financial Advisers and Financing Arrangements

Tirupati GraphiteAnnouncement

04/07/2024 07:00

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RNS Number : 0675V  Tirupati Graphite PLC  04 July 2024

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596/2014 which is part of UK law by virtue of the European Union (Withdrawal)
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considered to be in the public domain.

 

4 July 2024

Tirupati Graphite plc

('Tirupati', 'TG' or the 'Company')

 

Appointment of Financial Advisers and Financing Arrangements

 

Tirupati Graphite plc (TGR.L), the specialist flake graphite company and
supplier of the critical mineral for the global energy transition, is pleased
to announce progress on financing arrangements and the engagement of Musst
Investments LLP and ViTa-Connect LLC as its financial advisers.

 

Overview & appointment of financial advisers

·    As an ex-China producer of Graphite, not reliant on Chinese
investment or technologies, the Company has seen growing interest from
Governments and strategic investors who recognise TG's unique position as the
only listed ex-China junior flake graphite development company to bring new
projects to commercial production in the past five years. Furthermore, these
strategic investors, who acknowledge the supply deficit of flake graphite
forecast by sector specialists and global investment banks, have recognised
the Company's ability to generate positive operating margins continuously
since the inception of its first production in 2020 - a fact the Company
believes is unique within the sector.

·    The Company has appointed Musst Investments and ViTa-Connect as
financial advisers for progressing financing arrangements as further detailed.
Musst and ViTa-Connect's principals and associates have significant experience
in raising institutional capital both equity and debt, structuring financial
transactions for natural resources, and come from advisory, banking and
private equity backgrounds. The new financial advisers believe the Company is
well-positioned to develop and grow its business further, having demonstrated
its successful track record of asset development.

 

 

Progress on Financing Arrangements

·    The Company and its advisers have progressed engagements with
strategic investors to meet its capital needs taking into account the
limitations for issue of new Ordinary shares owing to the restrictions under
the listing rules and in consideration of the subdued share price of the
Company's ordinary shares.

·    In addition to advising on the Company's development plans and
financial matters related thereto, the Company has engaged Musst and
ViTa-Connect to raise:

·    Up to £3 million for use as working capital to streamline the
current flake graphite operations in Madagascar, targeting steady state
production and sales at a run rate of 20,000 tons per annum, and
including the Company's obligations towards existing and forthcoming
liabilities.

·    Project finance of up to £80 million from Development Financial
Institutions and other relevant funding institutions for expansion of the
Company's Madagascan project to 54,000 tons per annum production and
development of first 50,000 tons per annum module at its Mozambican projects.
These expansion investments are in line with the Company's growth strategy in
the global graphite market that has started facing a structural supply-deficit
and geo-political events that favour the Company.

·    The Company has also furthered engagements with multi-lateral
government bodies, working on securing ex-China critical minerals, for medium-
and long-term support including financing of the Company's projects.

·    As at the timing of this announcement, the Company and its advisers:

·    Are at an advanced stage of negotiations with a strategic financier
for a transaction that contemplates solutions for the current working capital
needs and potential part-financing of further expansion and development.
Initial due diligence has been completed and the parties are engaged in
concluding the headline terms of the transaction.

·    Have initiated discussions and provided insight on the Company's
current operations and expansion plans with another strategic partner with a
keen interest in energy transition and critical minerals.

·    Are at the due diligence stage with a Middle East Sovereign Fund keen
on investments in battery minerals.

·    Have remained engaged with government officials for refund of VAT in
Madagascar (c.$2 million) as well as Mozambique (c.$1.2 million).

 

 

Commenting on progress Shishir Poddar, CEO said:

 

"We are continuously progressing potentially comprehensive solutions for
financing the operations and development of the Company's business having
established our abilities to bring two new projects into operations
simultaneously.

 

We continue to make progress with financial institutions and strategic
partners, who recognise the unique opportunity that the Company has, to be the
leading supplier of flake graphite outside China, providing global customers
with a geopolitically secure supply of a commodity vital for the clean energy
transition. We will keep the markets updated as we progress towards achieving
the objectives and developing the Company's business, recognising the market
opportunities that are visible, being conscious that meeting financing needs
remains a material risk for our operations and development."

 

ENDS

For further information, please visit https://www.tirupatigraphite.co.uk/
(https://www.tirupatigraphite.co.uk/)  or contact:

 

 Tirupati Graphite Plc                          

 Puruvi Poddar - Joint Managing Director       admin@tirupatigraphite.co.uk

                                               +44 (0) 20 39849894
 CMC Markets UK Plc (Broker)

 Douglas Crippen

                                               +44 (0)20 3003 8632
 Musst / ViTa-Connect (Financial Adviser)

 Tabrez Khan                                   tabrez@vita-connect.co

                                               +44 746 903 3573

 FTI Consulting (Financial PR)

 Ben Brewerton / Nick Hennis / Lucy Wigney     +44 (0) 20 3727 1000

                                               tirupati@fticonsulting.com

 

About Tirupati Graphite

 

Tirupati Graphite Plc is a specialist Graphite producer and a supplier of the
critical mineral for a decarbonised economy and the energy transition. The
Company places a special emphasis on green applications including renewable
energy, e-mobility, energy storage and thermal management, and is committed to
ensuring its operations are sustainable.

 

The Company's operations include primary mining and processing in Madagascar
where the Company operates two key projects, Sahamamy and Vatomina with a
combined 30,000 tpa of currently installed capacity, producing high-quality
flake graphite concentrate with up to 97% purity and selling to customers
globally.

 

The Company also holds two advanced stage, world class, natural graphite
projects in Mozambique. Work has already commenced to optimise the economics
for development of the Montepuez graphite project, which is permitted for
100,000tpa production and where substantial construction work has already been
undertaken by the predecessor. A table of the Company's projects is provided
below:

 

 Country       Project           Stage
 Madagascar    Sahamamy          In production: 18,000tpa capacity
 Madagascar    Vatomina          In production: 12,000tpa capacity
 Mozambique    Montepuez         100,000tpa permitted, development-initiated
 Mozambique    Balama Central    58,000tpa permitted, development-ready

 

 

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