Shandong Yulong Gold plans to spend no more than 17 million Australian dollars to acquire Huaiteng Mining, in order to obtain two African graphite project mining rights. Ankuabe project currently plans to design an annual processing capacity of more than 1 million tons of ore, and an annual production of more than 60,000 tons of natural flake graphite concentrate.
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Since last year, Shandong Yulong Gold (601028.SH) has been carrying out the "dual-wheel drive" strategy of gold and new energy and new materials. In addition to investments in gold and new energy materials, the company has also added investments in graphite mines.
Shandong Yulong Gold announced tonight that the company plans to acquire 70% equity of Grafex Limited and KweKwe Graphite Limited, held by Triton Minerals Limited, through its designated subsidiary, to obtain the mining rights of Ankuabei Graphite Project and Eyre Peninsula Graphite Project, as well as the intellectual property and drilling core assets related to Nicanda Hill and Nicanda West graphite projects, with a total transfer price not exceeding AUD 17 million (approximately CNY 82.18 million), and the specific transfer price shall be subject to the formal transfer agreement signed after the audited evaluation.
As Zhang Peng, a director of the company, serves as a director of Triton Minerals Limited, this transaction constitutes a related party transaction, but not a significant asset restructuring.
This acquisition can be seen as an additional investment by Shandong Yulong Gold in graphite mines. Last year, Shandong Yulong Gold invested AUD 5 million to register shares of Triton Minerals Limited, a listed company on ASX, and became the second largest shareholder of Triton Minerals Limited with a shareholding ratio of 11.44%.
The first largest shareholder of Triton Minerals Limited is Jigao International Investment Development Co., Ltd., a wholly-owned subsidiary of Jinan High-tech Holding Group Co., Ltd., the controlling shareholder of Shandong Yulong Gold.
Triton Minerals Limited is an Australian listed company headquartered in Perth, Western Australia. Through its wholly-owned subsidiary in the United Arab Emirates, it controls two graphite mining companies, Grafex Limited and KweKwe Graphite Limited, located in Mozambique, Africa.
Grafex Limited holds the mining license of Ankuabei, a graphite mine with a resource of 46.1 million tons and an average fixed carbon content of 6.59%, and KweKwe Graphite Limited holds the mining license of Eyre Peninsula, a graphite mine with a resource of 103 million tons and an average fixed carbon content of 5.52%. Both mining licenses are located in the province of Cabo Delgado, Mozambique.
According to the latest data released by the U.S. Geological Survey, the global graphite reserves in 2023 are 280 million metric tons, mainly distributed in China, Brazil, Madagascar, Tanzania and other countries.
According to the company's previous announcement, the environmental permit of Ankuabei graphite project has been approved by the government, and the feasibility study of the project was completed in December 2017. The mining license was obtained in June 2019, with a term of 25 years.
Ankuabei project is also a new energy mining project with rapid progress. According to the company's annual report last year, the Ankuabei project of Triton Minerals Limited has obtained administrative licenses, such as road use permit, road construction permit, camp construction permit, and construction commencement permit, and has completed about 18 kilometers of road repair work from the main road to the temporary camp, in preparation for the formal construction. The planned design annual processing capacity is over 1 million tons of raw ore, with an annual output of over 60,000 tons of natural flake graphite concentrate.
According to the annual report of Triton Minerals Limited, in late March, representatives of the company and Shandong Yulong Gold visited Mozambique, and launched the project execution planning (PEP) process, including planning and infrastructure construction work in the area. The company has also started recruiting local project teams.