Tirupati Graphite plc (LON:TGR), the specialist flake graphite company and supplier of the critical mineral for the global energy transition, has announced progress on potentially meeting and supporting its financial requirements through a pre-production trade finance arrangement and provides an update in continuation to its previous RNS.
Trade Finance and further Financial Arrangement
· The Middle Eastern Sovereign Fund with whom the Company has been engaged with (See RNS dated 10 October 2024), has provided a trial pre-production trade finance sum of c.US$225,000 to the Company for supply of 280 tons of certain grades of flake graphite to an end-customer.
· The Company and the Fund are in discussions in respect of a larger trade finance arrangement that provides the Company with c.US$ 2.4 million via a similar, upfront pre-production prepayment. This larger arrangement is targeted for negotiation and finalisation during the Trial Deal period.
· The first shipment of 100 tons out of the 280 tons under the Trial Deal is now at the port destined to sail later this week and production of the balance quantity continues.
· As per the schedule for production and shipment, it is expected that the 280 tons of shipments shall be completed in early December.
· In addition to the trade finance arrangement, TG is in discussions with the Fund for development finance for the Company’s projects in Mozambique.
· The Company also remains engaged in discussions with other sources of funding.
Operations
· Simultaneous to production of the goods under the trade finance deal, sales to other customers of the Company for grades not covered under the deal continue to be made.
· The Company intends to stabilise operations of its Vatomina project to continuity from the trade finance funds received and those expected from other sales, and potential further refunds of VAT.
· As the operations stabilise to full continuity, the Company intends to progress further on all fronts.
Shishir Poddar, Tirupati Graphite Managing Director and CEO, commented:
“We are glad to have initiated a relationship with the Middle Eastern Sovereign Fund with whom we have been working for a comprehensive and long-term resolution of our current and growth financial needs. The trial deal forms a stepping stone, the success of which shall strengthen our position in finding prudent solutions to our financial requirements; a key consideration that the Company has kept in mind in its efforts to protect the interests of its existing shareholders.”
