(MENAFN- ProactiveInvestors - Australia) Triton Minerals (ASX: TON), formerly Triton Gold, is now fully funded to complete the current exploration and drilling program for its Mozambique Graphite Project in the Cabo Delgado Province after raising over A$1.6 million.
This was achieved through a placement of shares to sophisticated and professional investors as well as the completion of a Share Purchase Plan.
Perth-based Jigsaw Geoscience, the company's geological service provider, are in final preparations for the upcoming initial mapping, soil sampling and trenching program and are due to be on ground at the Balama North prospect on about 22 March 2013.
This first phase exploration will give Triton a better understanding of the underlying geological structure and prospectively of the project.
It will provide the necessary knowledge to further refine and categorise anomalous zones as well as help in the planning and execution of the drilling program which is due to start later this year.
Balama North is promising due to its proximity to Syrah Resources' (ASX: SYR) very large and high grade Balama graphite deposits.
The asset is also next to known graphite mineralisations and AMG Advanced Metallurgical Group (NYSE: AMG, AMG) at Ancuabe.
Funding
The funds were raised through a placement 10 million shares at $0.05 each that was unanimously supported by shareholders while the SPP raised $1.1 million.
Triton may, at its discretion and support from Merchant Capital Markets, place the remaining $400,000 from its SPP.
It noted that while not fundamental to its funding requirements, doing so would be an effective way of introducing newly interested sophisticated and professional investors.
The Placement was co-ordinated through Merchant Capital Markets as lead broker to the offer and supported by Patersons Securities as corporate advisors.
Mozambique Graphite Project
Triton had executed a Joint Venture Agreement with Mozambique company Grafex Limitada to earn up to 80% interests in the five graphite prospecting license applications that cover about 1,150 square kilometres.
It will earn an initial 49% with an exploration expenditure commitment of $0.5 million, 10 million shares and 10 million options that expire in three years and exercisable at $0.05 each.
This can increase to 51% with another $500,000 payment, the issue of another 5 million shares and a commitment to carry out a Definitive Feasibility Study. A move to an 80% interest will require Triton to free carry Grafex.
Triton has identified target zones following detailed analysis of the aeromagnetic and radiometric data, as well as regional geology of the North Balama licence.
The results suggest that graphite mineralisation is continued on the North-East trend, extending up from the high grade graphite deposits at Syrah's tenements.
Accordingly, the company has categorised the various target zones into priority levels 1 through 5, with level 1 being the highest priority.
The initial exploration focus will be on the first two levels of targets zones.
The priority targets will enable a cost effective and efficient mapping, trenching and drilling program.
Triton is also undertaking further analysis of the Ancuabe prospects to potentially refine and categorise the identified anomalous zones.
Analysis
With the proximity of Balama North to Syrah's Balama project, where a global Inferred Resource of 564 million tonnes at 9.8% total graphitic content was recently defined for the Balama West prospect, Triton is well placed to attempt to mirror some of its fellow Australian's success.
Syrah's share prices have gone up by about 374% in the last year, from $0.67 a share a year ago to closing at $3.18 yesterday.
This is further reinforced by Triton now being fully funded for its current exploration program as well as Balama North's proximity to essential infrastructure including electrical supply and communications as well as upcoming redevelopment and expansion of both the Pemba port and airport facilities.
With shares trading at $0.058 and a market capitalisation of just $6.3 million, Triton offers investors inexpensive exposure to a highly prospective graphite exploration play close to a proven resource.
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