PERTH (miningweekly.com) – Graphite developer Magnis Resources has raised A$3-million through a share placement to sophisticated and institutional investors to complete the bankable feasibility study (BFS) and progress the Nachu project, in Tanzania.
More than 8.5-million shares were issued at a price of 35c each.
The February raising followed a similar raising in October last year, which saw Magnis raise A$4-million through a share placement.
Magnis chairperson Frank Poullas said on Friday that the company was encouraged by the strong interest shown in the capital raising, which was done at no discount to the previous closing price.
“There is no doubt that Nachu contains the highest quality graphite in the world and that’s evident by the 99.9% concentrate that we are able to achieve via basic flotation.”
Poullas noted that the BFS for the Nachu project was on track for completion during the current quarter, while discussions with potential end-users in North America, South Korea, Europe and Japan were continuing.
The Nachu project was slated for first production in the fourth quarter of 2016.