PERTH (miningweekly.com) – ASX-listed Magnis Resources has secured an A$11.1-million investment from AL Capital Holding, giving the firm a 4.98% shareholding in the graphite miner.
The placement was made under Magnis’ existing capacity, and the 30-million shares were issued at a price of 37c each, representing a 4% premium to Magnis’ 15-day volume weighted average share price.
Magnis told shareholders on Tuesday that the funds will be used to strengthen the company’s balance sheet and allow it to capitalise on the current and future growth opportunities in the battery technology sector, and to fund the ongoing investment in the future development of the Nachu graphite project, in Tanzania.
Magnis chairperson Frank Poullas said that the investment from AL Capital was a testament to the quality of the company’s projects and its technologies.
“Our financial position is now secured for the medium term, but more importantly, we have a strong partner and we welcome AL Capital’s investment. We confirm we are making excellent progress at our most advanced battery plant at Huron Campus, in New York,” he added.
Magnis is part of a consortium developing three battery plants, with the Huron Campus the first to enter into production, targeted for 2019. The lithium-ion battery plant will produce 15 GWh at full capacity.