Graphex Mining has raised $2.45 million in placement of 8.7 million shares to fund Chilalo graphite project in southeast Tanzania.
The proceeds will be used to conduct a feasibility study, finance and offtake arrangements for the project.
Graphex managing director, Phil Hoskins said the Australia Securities Exchange-listed company received strong support for the shares placement from existing shareholders and new investors.
Bridge Street Capital Partners managed the placement of 8.7 million shares to investors and Graphex’s directors subscribed for 320,572 of equities, which are subject to shareholder approval at the company’s next general meeting.
“We were also mindful of capping placement at 12.5% of issued capital to preserve company’s tight capital structure,” said Hoskins.
After Syrah Resources exported first cargo of graphite from Mozambique in 2017, a number of firms are taking strategic positions in Tanzania to cash in on the growing global demand for battery powered electric vehicles.