UK-based Tirupati Graphite has agreed to acquire the entire issued share capital of Suni Resources, a Mozambican subsidiary of Battery Minerals (BAT).
Suni Resources holds the Mozambique graphite assets portfolio of ASX-listed Battery Minerals.
Tirupati agreed to pay a total consideration of $9.1m (A$12.5m) in cash and shares to acquire the projects.
The transaction includes all associated assets, infrastructure, permits, licences and intellectual property on the two graphite projects, which spread over a combined 18,500ha permit area.
According to estimates, the two complementary graphite deposits contain mineral resources of more than 152 million tonnes at 8.5% total graphite content (TGC).
The acquisition forms part of Tirupati’s efforts to diversify its resource base.
Tirupati Graphite CEO Shishir Poddar said: “With this acquisition, we take a significant leap forward our mission of becoming a leader to meet the global needs for this critical material and contributing to the green aspirations of the world.”
The deal is subject to the mandatory shareholder approval of Battery Minerals and approval from the Ministry of Mineral Resources and Energy in Mozambique.
Planned to be developed in two phases, the Montepuez project is expected to have a 100,000tpa graphite concentrate capacity.
The Montepuez project is estimated to contain mineral resources of 119.6 million tonnes (Mt) at 8.1% TGC and ore reserves of 42.2 million metric tonnes at 9.27% TGC.
Located approximately 260km east of Pemba, the Balama Central project includes two main graphite ore bodies comprising mineral resources of 32.9Mt at a grade of 10.2% TGC.