ASX-listed Mineral Commodities (MRC) has announced plans for a A$15-million capital raise to invest in its South Africa mineral sands operation and to fund its battery minerals division.
The company on Thursday launched an accelerated nonrenounceable entitlement offer under which up to 501.1-million new ordinary shares would be issued at a price of A$0.03 each.
The funds raised will be used to increase the processing capacity of the Tormin mineral sands operation, where MRC is mining ilmenite, zircon and rutile.
The funds will also be put towards the acquisition of the remaining interest in the Skaland graphite project, in Norway, and to build the graphite anode pilot. During the September quarter, MRC entered into an agreement to settle disputes between MRC Graphite and minority 10% shareholder BSG Mining. The settlement resulted in MRC Graphite obtaining 100% ownership of Skaland Graphite by acquiring the 10% shareholding for $1.9-million.
MRC already paid $1.27-million to BSG in July and is required to pay $633 333 by November 17.
“The entitlement offer will enable MRC to implement critical improvements at Tormin to underpin the return to profitability. Importantly, the funding will support advancement on the battery minerals projects at a time when the global market for graphite and other battery minerals is undergoing positive transformation and attracting investment interest.” said CEO Scott Lowe.
Major shareholders entered into commitment letters with MRC to subscribe for their entitlements totalling A$7.9-million.