PERTH (miningweekly.com) – Graphite junior Metals of Africa would raise some A$4.5-million to advance its projects in Mozambique.
The ASX-listed company on Friday said that it would raise an initial A$4-million through a share placement to institutional and sophisticated investors, issuing 72.7-million shares at a price of 5.5c each.
The issue price represented a 15.6% discount for the company’s ten-day volume weighted average price.
The share placement would be undertaken in two tranches, with the first 53.2-million shares issued under the company’s placement capacity. The issue of the remaining 19.5-million shares would be subject to shareholder approval.
In addition to the share placement, Metals of Africa would also undertake a share purchase plan (SPP) to raise an additional A$500 000.
Under the SPP, eligible shareholders would be able to subscribe for up to A$15 000 in new shares, with the shares also priced at 5.5c each.
“The capital raising will strengthen the company’s balance sheet, enhance our ability to rapidly develop our world-class Montepuez and Balama Central graphite projects, and take advantage of the many opportunities currently presenting in the industry, including critical minerals for the lithium-ion battery supply chain and associated disruptive graphite technologies,” said Metals of Africa MD Cherie Leeden.
“Our graphite projects have the potential to be very low-cost suppliers to the rapidly expanding lithium-ion battery anode market and our feasibility study works are aimed at delivering on that objective.”
In addition to financing the feasibility studies, funds would also be used to complete bulk sampling and metallurgical testwork and for general working purposes.