Tirupati Graphite has signed an agreement to acquire the entire issued share capital of Suni Resources that holds a portfolio of graphite assets in Mozambique of Battery

The assets include the construction initiated Montepuez graphite project and the advanced feasibility study stage Balama Central graphite project.

Tirupati has agreed to pay a total consideration of A$12.5m ($9.1m) in a cash and shares to acquire the projects.

The acquisition consists of all associated assets, infrastructure, permits, licences and intellectual property on both projects.

Spread over a combined 18,500ha permit area, the two complementary graphite deposits are estimated to contain mineral resources of over 152 million tonnes at 8.5% total graphite content (TGC).

Battery  Minerals has conducted extensive pre-development work and a definitive feasibility study (DFS) on the Montepuez project. The work has resulted in a development plan for a 100,000 tonnes annual graphite concentrate capacity in two equal stages.

For a first stage 50,000 tonnes per annuam (tpa) flake graphite project at Montepuez, construction has already commenced with a substantial completion of plant area grading and tailing dam.

The Montepuez project is estimated to contain mineral resources of 119.6 million tonnes 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, Lennox and Byron, which contain mineral resources of 32.9Mt at a grade of 10.2% TGC.

The acquisition is part of Tirupati’s strategy of diversifying its resource base and mitigating country risk.

Tirupati stated: “The Acquisition provides resource diversity to support the Company’s strategy of being a global leader in flake graphite, adding substantial JORC Code (2012) resources and reserves to complement its existing resources of high-quality large flake graphite in Madagascar.”

The transaction is subject to the mandatory shareholder approval of Battery Minerals and approval from the Ministry of Mineral Resources and Energy in Mozambique.