(Ecofin Agency) - Tristream Capital offers alternative financing solutions to mining companies, in exchange for royalties on production. Its current portfolio includes investments in Latin America and Asia.

Tristream Capital, a company that offers alternative financing solutions to mining companies in exchange for royalties on production, is planning to inject £3 million ($3.8 million) into the Aukam graphite project in Namibia.

According to project owner Gratomic, Tristream will receive a 5% royalty on graphite sales from Aukam. It was revealed on June 17 that the two companies have signed a non-binding letter of intent, with a definitive agreement expected to be signed within three months, subject to due diligence being carried out on Tristream.

Six months after receipt of the investment, Tristream will receive the sales royalty for 5.5 years, after which the royalty will be reduced to 1% over the remainder of the mine's life.

This is Tristream's first investment in Africa, but the company has previously invested in lithium assets in Argentina, gold in Peru and Mexico, and zinc and silver in Asia. No resources or mineral reserves have yet been identified in the Namibian project. However, Gratomic has been operating a processing plant since 2023, with a planned production of 12,000 tonnes by November 2024.