David Flanagan’s Battery Minerals is seeking to raise at least $15 million via a share placement to help fund development of its Montepuez graphite project in Mozambique.
The raising is pitched at 6¢ a share, representing a 4.8 per cent discount to the stock’s last trading price, and comes with a one-for-two free option exercisable at 10¢ by July 2023.
Battery also wants to raise a further $5 million through a share purchase plan on the same terms.
The company announced this month that it had struck a $US30 million funding agreement with RCF comprising $US25 million in debt and $US5 million in equity.
Montepuez, which has an estimated capital cost of $US42 million, is aimed at cashing in on surging demand for graphite from lithium battery manufacturers.
Battery said the proceeds of the raising would be used to fund construction of Montepuez and for further studies on its second graphite project in Mozambique, Balama. The combination of the raising and the RCF arrangement means Battery is on track for project commissioning at Montepuez early next calendar year.
Key items for the processing plant and camp have been bought and binding offtake agreements are in place covering 80 per cent of the forecast production from stage one of the project.
Under stage one, Montepuez will produce about 50,000 tonnes of graphite concentrate a year, rising to 100,000 tonnes under stage two.
Source: The West Australian