The funding will be used to develop the mine with initial capacity to produce up to 200,000 tons of graphite concentrate per year.
Under the terms of the LOI, Shenzhen will take up to $100m in direct equity in Triton while the remaing $100m will be provided as a debt facility.
The companies also signed an off-take agreement involving up to 200,000 tons of graphite annually with fixed price of $875 per ton (FOB) for a decade.
Upon repayment of debt to SQZG, Triton will supply SQZG with graphite at a discounted price.
SQZG managing director Chen Shaogang said: "Considering various aspects such as resource quality, technical expertise, rapid and effective project progression, Board and management team determination and resolve, we view the Nicanda Hill deposit as a justifiably world class deposit and Triton as the industry leader."
"We are delighted to align our Company with the Triton team in a strategic long term relationship and we look forward to working closely together through the due diligence process and hope to finalise a definitive agreement soon to formalise the terms of the LOI."
