Triton Minerals raises $1M to progress Nicanda Hill feasibility study

Triton Minerals (ASX:TON) has raised $1 million through a share placement to progress the Feasibility Study at the Nicanda Hill graphite project in Mozambique.Proceeds will also be used to further delineate the Mutola, Grande and Macico (MGM) high grade zones at Nicanda Hill.The funds were raised through a placement of 7.1 million shares priced at $0.14 each to institutional and sophisticated investors.Participants in the Placement will be issued with one free attaching option for every two shares allocated. These are expected to be listed, will be exercisable at A$0.20 per share and expire two years from the date of issue.    Triton managing director Brad Boyle said:“Triton is pleased with the support we have received from institutional and sophisticated investors.“The proceeds from the Placement will assist the company to progress the feasibility study at the Nicanda Hill Project, which we expect to be completed by the fourth quarter of 2015.”Nicanda HillNicanda Hill is the world’s largest known combined graphite-vanadium deposit with an Indicated and Inferred resource of 1,457 million tonnes at 10.7% total graphitic carbon and 0.27% vanadium pentoxide (V2O5).It hosts multiple high grade graphite zones and contains good quality medium and coarse flake graphite.In February, the company engaged a complete team of technical experts to assist with the completion of the DFS for the project.This gives the company confidence to complete the DFS by the end of 2015 and progress the project towards graphite production.Nicanda Hill is planned as a shallow open pit operation, focused initially on the MGM graphite zones and accessed by three separate ramps.The shallow nature of the open pit operation combined with a mineralised waste grade averaging 8%TGC, represents exceptionally low technical risk.Average grades for the first five years expected to be in excess of 13%TGC.An independent Scoping Study has estimated pre-tax NPV at US$1,230 million and IRR at 137%.Capex is estimated at US$110 million with FOB operating costs of US$315 per tonne to pay back within 12 months of commissioning.AnalysisTriton Minerals’ $1 million share placement institutional and sophisticated investors will progress the Nicanda Hill feasibility study.Nicanda Hill contains the world’s largest known graphite and vanadium resource.Recently Triton delivered some impressive metallurgical results from Nicanda Hill, with upgrades of up to 99.9%C achieved in laboratory test work.Not to be forgotten are the vanadium concentrate with grades up to 0.74% V2O5, and a zinc concentrate assaying 7% produced from the graphite tail through simple flotation process.Significant price catalysts are ahead for Triton including:- Advancing discussions with potential offtake partners for Nicanda Hill;- Completing the Nicanda Hill Environmental Study; and- Completing the Nicanda Hill Definitive Feasibility Study by the end of 2015.Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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