REG - Tirupati Graphite - Financing Arrangements and Progress Update

Tirupati GraphiteAnnouncement

13/11/2024 07:00

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RNS Number : 9771L  Tirupati Graphite PLC  13 November 2024

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considered to be in the public domain.

 

13 November 2024

Tirupati Graphite plc

 

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

 

Financing Arrangements and Progress Update

 

Tirupati Graphite (TGR.L), the specialist flake graphite company and supplier
of the critical mineral for the global energy transition, is pleased to
announce progress on potentially meeting and supporting its financial
requirements through a pre-production trade finance arrangement and provides
an update in continuation to its previous RNS.

 

Trade Finance and further Financial Arrangement

·    The Middle Eastern Sovereign Fund (the "Fund") with whom the Company
has been engaged with (See RNS dated 10 October 2024), has provided a trial
pre-production trade finance sum of c.US$225,000 to the Company for supply of
280 tons of certain grades of flake graphite to an end-customer (the "Trial
Deal").

·    The Company and the Fund are in discussions in respect of a larger
trade finance arrangement that provides the Company with c.US$ 2.4 million via
a similar, upfront pre-production prepayment. This larger arrangement is
targeted for negotiation and finalisation during the Trial Deal period.

·    The first shipment of 100 tons out of the 280 tons under the Trial
Deal is now at the port destined to sail later this week and production of the
balance quantity continues.

·    As per the schedule for production and shipment, it is expected that
the 280 tons of  shipments shall be completed in early December.

·    In addition to the trade finance arrangement, TG is in discussions
with the Fund for development finance for the Company's projects in
Mozambique.

·    The Company also remains engaged in discussions with other sources of
funding.

 

Operations

·    Simultaneous to production of the goods under the trade finance deal,
sales to other customers of the Company for grades not covered under the deal
continue to be made.

·    The Company intends to stabilise operations of its Vatomina project
to continuity from the trade finance funds received and those expected from
other sales, and potential further refunds of VAT.

·    As the operations stabilise to full continuity, the Company intends
to progress further on all fronts.

 

Shishir Poddar, Managing Director and CEO, commented:

"We are glad to have initiated a relationship with the Middle Eastern
Sovereign Fund with whom we have been working for a comprehensive and
long-term resolution of our current and growth financial needs. The trial deal
forms a stepping stone, the success of which shall strengthen our position in
finding prudent solutions to our financial requirements; a key consideration
that the Company has kept in mind in its efforts to protect the interests of
its existing shareholders."

 

 

ENDS

 

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

 

 Tirupati Graphite Plc                           admin@tirupatigraphite.co.uk

 Puruvi Poddar - Joint Managing Director       +44 (0) 20 39849894
 CMC Markets UK Plc (Broker)

 Douglas Crippen                               +44 (0)20 3003 8632
 Musst / ViTa-Connect (Financial Adviser)       tabrez@vita-connect.co

 Tabrez Khan                                   +44 746 903 3573 / +971 50871 7864

 FTI Consulting (Financial PR)                 +44 (0) 20 3727 1000

 Ben Brewerton / Nick Hennis / Lucy Wigney     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, with
leading low development capital and operating costs. 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 installed final production nameplate capacity of 30,000tpa, subject
to minor capex additions. The Madagascar operations produce 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          Production paused: 18,000tpa nameplate capacity
 Madagascar    Vatomina          In Production: 12,000tpa nameplate capacity
 Mozambique    Montepuez         100,000tpa permitted, construction-initiated
 Mozambique    Balama Central    58,000tpa permitted, development-ready

 

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