REG - Tirupati Graphite - Update regarding Acquisition of Suni Resources

Tirupati GraphiteAnnouncement

19/12/2022 07:00

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RNS Number : 0772K  Tirupati Graphite PLC  19 December 2022

19 December 2022

Tirupati Graphite plc

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

 

Clarification and update regarding Acquisition of Suni Resources

 

Tirupati Graphite plc (TGR.L, TGRHF.OTCQX), the specialist graphite and
graphene company developing sustainable new age materials, announced on 17
August 2021 its agreement with Battery Metals Limited to acquire the entire
issued share capital of its subsidiary Suni Resources SA as per the abridged
terms in the announcement and varied subsequently.

 

Under the Key Transaction Terms in the announcement, the first bullet point
states that:

 

Subject to the satisfaction of the conditions to the transaction, the
Company  will acquire from Battery Minerals 100% of the issued share capital
of Suni Resources (a Mozambique incorporated subsidiary of Battery Minerals),
all related intellectual property relating to the Montepuez Project and Balama
Central Project, and will be assigned the shareholder loans owed by Suni
Resources to certain Battery Minerals group companies amounting to c.AU$29
million for a total aggregate consideration of AU$12.5 million.

 

Owing to some questions received from investors in relation to the shareholder
loans amounting to c.AU$29 million that will be assigned to TG by Battery
Minerals group companies, the Company wishes to clarify that:

 

·    TG will not be assuming any external debt as a result of the
acquisition and it will not have any obligation in respect of repayment of or
the payment of interest in respect of any third party debt upon completion as
a result of the acquisition of Suni Resources; and

·    The debt assigned to TG by Battery Minerals group companies shall on
completion become an intra group debt within the enlarged TG group owed by
Suni Resources to TG.

 

The Company further confirms that arrangements have been progressed for the
provision of the Bank Guarantee ('BG') to be completed which will allow for
the last steps towards closing of the acquisition of Suni Resources to be
progressed.

 

Shishir Poddar, CEO of Tirupati Graphite, said:

"We felt duty bound to correct the misconception that the Company is acquiring
any external debt through the acquisition of Suni Resources. The agreed
consideration is the only cost to Tirupati for acquiring these
transformational, ready-to-construct projects with globally significant
resources.

 

"Without taking on any debt, TG will acquire the Balama Central and Montepeuz
projects in Mozambique, which are both fully licensed for construction to
>150,000 tpa flake graphite production capacity and which have already
benefited from significant investment to this date."

 

 

ENDS

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

 

 Tirupati Graphite Plc

 Puruvi Poddar - Chief of Corporate & Business Development        admin@tirupatigraphite.co.uk

                                                                  +44 (0) 20 39849894
 Optiva Securities Limited (Broker)

 Ben Maitland - Corporate Finance                                 +44 (0) 20 3034 2707

 Robert Emmet - Corporate Broking                                 +44 (0) 20 3981 4173

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

 Ben Brewerton / Nick Hennis / Kelly Smith                        tirupati@fticonsulting.com

 

About Tirupati Graphite

 

Tirupati Graphite Plc is a specialist flake graphite company, a material vital
in the energy transition economy. The Company places a special emphasis on
"green" applications, including renewable energy and energy efficiency, energy
storage and thermal management and is committed to ensuring its operations are
sustainable as well.

 

The Company's operations include primary mining and processing in Madagascar,
where the Company operates two key projects, Sahamamy and Vatomina; 12,000 tpa
installed capacity of high-quality flake graphite concentrate with up to 96%
purity is currently being produced and sold to customers globally, planned to
increase to 84,000 tpa as per the Company's modular medium-term development
plan.

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