Tirupati in talks for further trade finance

Specialist graphite producer Tirupati Graphite, which is listed on the LSE and has assets in Mozambique and Madagascar, has secured about $225 000 in trade finance from the Middle Eastern Sovereign Fund and is in talks with the fund regarding a further $2.4-million in trade finance.

The initial funding has been provided to Tirupati in return for 280 t of certain grades of flake graphite. The first 100 t shipment is now at port, in Madagascar, and ready to ship later this week.

The remaining 180 t of graphite is expected to be shipped by early December.

Negotiations regarding the $2.4-million in trade finance are subject to the success of the initial transaction.

Tirupati reports that it and the Middle Eastern Sovereign Fund are also discussing the potential of the fund providing development finance for Tirupati’s projects in Mozambique.

"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," comments Tirupati MD and CEO Shishir Poddar.

Tirupati’s 12 000 t/y Vatomina project, in Madagascar, is in production, but output at the 18 000 t/y Sahamamy project, in Madagascar has been paused for the time being.

The company has also started construction on the 100 000 t/y Montepuez project, in Mozambique, while its 58 000 t/y Balama Central project, is ready for development to start.