Photo by: Bloomberg
JOHANNESBURG (miningweekly.com) – Graphite production and exploration company StratMin Global Resources has raised £800 000 through the placing of 11.42-million new ordinary shares of 4p each at a placing price of 7p a share with certain existing and new institutional investors.
The placing followed the signing by the company of a five-year offtake agreement with an unnamed independent processor and merchant of graphite, as well as positive exploration results identifying further graphite at its Loharano property, in eastern Madagascar.
The net proceeds of the placing would be used for further investment at Loharano’s processing plant and for general working capital purposes.
“Following the positive news last week of the signing of the offtake agreement and the identification of further mineralisation at Loharano, raising £800 000 in equity allows the company to further invest at the plant in both reliability, product volume and product quality.
“This is essential to ensure that we are in the strongest possible position as we resume production and increase sales,” commented MD Manoli Yannaghas.
As part of the placing, the company had agreed to issue one warrant for every two placing shares subscribed for by the placees, each exercisable at 10p at any time before November 4.
StratMin further announced on Wednesday that it had issued 535 714 new ordinary shares to an external third party in lieu of £37 500 in fees owed to it.
Application had been made to the LSE for admission of the placing shares and the fee shares to trading on Aim and it was expected that admission would take place and that trading would start on November 4.
Following admission, StratMin would have 112.6-million ordinary shares in issue, with each share carrying the right to one vote.