Tirupati Graphite PLC (LSE:TGR, OTCQX:TGRHF) has recently appointed Musst Investments and ViTa-Connect as financial advisers to aid in the ongoing financing discussions. According to a statement released by Tirupati, the principals and associates of Musst and ViTa-Connect possess extensive experience in securing institutional capital, both in terms of equity and debt, and have a strong background in structuring financial transactions for natural resources from advisory, banking, and private equity sectors.
The company is presently seeking funding of up to £3 million for working capital, with the goal of streamlining its current flake graphite operations in Madagascar. Additionally, they are seeking project finance of up to £80 million to expand their Madagascan operations to achieve a production capacity of 54,000 tons per annum. Furthermore, they have plans to develop the first 50,000 tons per annum module in Mozambique.
Tirupati has indicated that advanced negotiations are underway with a strategic financier to address the company’s working capital requirements, as well as to partially finance the planned expansion and development initiatives. The company has reported that initial due diligence has been completed, and both parties are actively engaged in finalizing the headline terms of the transaction.
Moreover, the company is also in discussions at the diligence stage with a sovereign fund from the Middle East, which has expressed a keen interest in making investments in battery minerals, as stated in the company’s official release. Simultaneously, discussions regarding VAT refunds in Madagascar (approximately $2 million) and Mozambique (approximately $1.2 million) are also ongoing.
Shishir Poddar, the Chief Executive of Tirupati, expressed optimism about the progress being made in the ongoing negotiations, stating, “We continue to make progress with financial institutions and strategic partners, who recognise the unique opportunity that the company has, to be the leading supplier of flake graphite outside China.”
It is evident that Tirupati Graphite is actively seeking to forge strategic partnerships and secure the necessary financing to bolster its operations and achieve its expansion plans. The company’s proactive approach and commitment to progress in negotiations demonstrate a clear vision for growth and development within the natural resources sector.