** Shares of Triton Minerals TON.AX down 14.3% to A$0.006
** Stock falls as much as 28.6% to A$0.005 earlier in the day, posting its biggest intraday pct drop since late December 2011
** Specialty minerals miner says China-based Shandong Yulong Gold's 601028.SS unit has failed to pay A$3.42 mln ($2.16 mln) due on Feb 28 under its earlier share and purchase agreement
** Says Shandong's unit breached obligations under agreement; co has sent letter of demand and is taking legal advice
** Stock down 33.3% YTD
($1 = 1.5855 Australian dollars)
(Reporting by Nikita Maria Jino in Bengaluru)
((Nikita.Jino@thomsonreuters.com;))
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