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LONDON - Tirupati Graphite PLC (LSE:TGR) has announced the restart of mining and processing at its Vatomina project in Madagascar as of Monday, following a period of halted operations due to financial difficulties. The specialist flake graphite producer, critical for the global energy transition, also disclosed securing over £1 million in funding through the issuance of Convertible Loan Notes (CLNs) and detailed its strategic investment and fundraising plans.
The Vatomina project, which had been idle since December 12, 2024, resumed with an expected initial daily production rate of 20-25 metric tons (MT) for February, increasing to 1,500 MT per month by December 2025. CEO James Nieuwenhuys emphasized the company’s commitment to stable production, capacity expansion, and enhanced environmental, social, and governance (ESG) practices during a January site visit.
In terms of fundraising, Tirupati received investments from directors and a strategic investor as part of a private placement through Optiva Securities Ltd. The CLN Offering, which has raised £1,605,000 before expenses, is the first stage of a larger proposed fundraise. The company also plans to launch a placing of ordinary shares later this month, subject to shareholder approval.
The 2025 Notes, set to mature on December 31, 2025, may be converted into ordinary shares at £0.05 each and come with warrants that allow holders to subscribe for additional shares under certain conditions. The company has also reached an agreement to convert existing Series 1 Notes into ordinary shares and is in discussions regarding the Series 2 Notes.
Despite the positive developments, the company faces significant financial challenges, including overdue creditor balances and limited cash resources as of January 1, 2025. Negotiations are ongoing to address prepayments from customers and other trade creditors. The Board is reviewing the recoverability of the Group’s assets and acknowledges the high financial risk to the company’s future.
Tirupati’s listing on the London Stock Exchange (LON:LSEG) remains suspended due to delays in completing its financial statements and statutory audit for the year ended March 31, 2024, caused by limited access to accounting systems. The company is making urgent efforts to regain control and complete the necessary financial reporting to resume trading of its shares.
This update is based on a press release statement by Tirupati Graphite PLC.
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