Tirupati Graphite PLC (LSE:TGR, OTCQX:TGRHF) said it has received US$1 million net in prepayments from existing clients to support the ramp-up of operations in Madagascar.
Deals have been closed with customers in the US and Europe with 100% upfront prepayment for orders placed, said the statement.
Orders are to be shipped over six months and are the equivalent of 15% of expected sales over the period,
A discount of between 7-15% has been applied to the price in return for the prepayments which also reflects recent market price softening.
Shishir Poddar, executive chairman, said: "The prepayments announced today will significantly support our working capital requirements and provide suppliers and customers with confidence allowing us to maintain a strong pipeline of business."