Tirupati Graphite PLC (LSE:TGR, OTCQX:TGRHF) has denied reports it intends to go private, adding that being listed on the London Stock Exchange will continue to help build its business.
In a general update, Tirupati added it is still looking at ways to secure additional funding for the balance of £1 million of the working capital required to bring production up to the immediate target of 1,500 - 1,600 tons per month consistently.
Specifically, this has involved meeting with the Madagascar government for the release of a US$2 million VAT refund with increased confidence this money will be returned to the company imminently.
Tirupati added it was in talks on working capital facilities from the company's bankers in Madagascar supported by a personal guarantee being agreed by the executive chairman, Shishir Poddar.
Due diligence work is also ongoing with development finance groups (DFIs) to fund expansion effective production at Madagascar first to 36,000tpa of graphite in the near term and then to 54,000tpa thereafter through the addition of a new 18,000 tpa module.
Shishir Poddar added: "Since the admission to the London Stock Exchange in December 2020, the Company has achieved significant milestones towards its goals.
"We have overcome significant operational challenges. We are now working to secure the modest amount of working capital required to ramp up production with the target of becoming the first profitable junior graphite company outside China.
“We remain committed to being a public company and to the London market."
Separately, Tirupati Graphite said it had appointed Puruvi Poddar, its business development head, and Alastair Bath to the board in executive roles.
Murat Erden has resigned as a non-executive due to personal reasons but will set up and head an advisory board.
Two more non-executive directors are being sought along with a Chief Financial Officer, preferably located in the UK.
Shishir Poddar said: "I am delighted to welcome Puruvi and Alastair to the Board.
“Puruvi has already demonstrated a strong commitment to the Company and has acquired extensive expertise in all aspects of the business and the global graphite market.
“In the months since Alastair joined the Company, he has demonstrated that he can provide us with a strong presence in the London market alongside adding value in executing strategic objectives.”