Triton Minerals (ASX:TON) has attracted about A$1.8 million in new investments in a difficult equity market as the company seeks to improve resources and feasibility metrics at its Mozambican graphite properties.
The funds came via recently close entitlement offer priced at A$0.09 per share, with acceptances received for a total of about 20.4 million shares.
This strong vote of confidence from existing shareholders was supported by a $4 million underwriting commitment by commodities-focused investment banking firm GMP Securities Australia.
Further endorsement for the $11.3 million fundraiser will be sought in a shortfall placement aimed at raising an additional $7.3 million within three months.
The funding drive first flagged in November last year is expected to be used to define resources at the P66 zone of the company’s Nicanda Hill project as well as at the Ancuabe project.
Part of the proceeds will be used to fund the start of construction for a joint venture manufacturing facility in Mozambique with JV partner Yichang Xincheng Graphite.
These plans are unfolding as Triton incorporates positive new drilling results from P66 as part of a proposed integrated operation designed to produce high-purity flake graphite.
A revised site plan and process flow sheet have been finalised whilst the metallurgical test work and geotechnical assessments are ongoing.
An expanded Definitive Feasibility Study is expected to be completed in mid-2016.
Source: Proactive Investors Australia