PERTH (miningweekly.com) – ASX-listed graphite hopeful Magnis Resources has raised A$3-million through a share placement to institutional and sophisticated investors, to complete a maiden Joint Ore Reserves Committee-compliant resource and a prefeasibility study on its Nachu project, in Tanzania.
The placement consisted of more than 17.6-million shares, at an issue price of 17c each.
Engineering firm Logiman would become a significant shareholder in Magnis after subscribing for a majority of the shares on offer.
“We are very encouraged by the strong interest in our capital raising, particularly in such a difficult economic environment,” said Magnis chairperson Frank Poullas.
He added that having Logiman as a substantial shareholder in the company added validation to the Nachu project, given the company’s proven track record with investment in the resources sector.