Graphite miner Triton Minerals have recently announced a new binding take-off contract worth US$2 billion over the next 20 years.
The deal struck with Chinese graphite products specialist Yichang Xincheng Graphite Company will ensure exclusive supply rights to Triton from their Mozambique, Madagascar, Malawi, and Tanzania operations.
The agreement assures a floor price of US$1000 per tonne, with 100,000 tonnes to be supplied each year.
The announcement came on March 30, along with a request for a trading halt.
Triton’s share price leapt from 22c on Tuesday March 24 up to 36.5c at Friday’s ASX close, however since the relinquishing of the trading halt this morning has shot up to 63c, an increase of nearly 300 per cent.
Triton’s share price was flatlined at around 15c for weeks in the lead up an announcement on March 19 that graphite from their Mozambique operation was suitable for use in a diverse range of graphite products.
Triton will supply product with 90 per cent Total Graphitic carbon and moisture content of less than one per cent, and also will not be restricted from selling to other parties.
Triton commenced their drill program at Nicanda Hill less than 12 months ago, and since then have reported the world’s largest flake graphite and vanadium JORC 2012 resource.
Triton Minerals have reported they were most recently valued at $2.6 billion.