Photo by: Bloomberg
PERTH (miningweekly.com) – Graphite developer Syrah Resources will raise A$94-million through an institutional placement to complete the ramp-up of its Balama graphite project, through to positive cash flow.
The company on Tuesday said that some 42.2-million new shares would be placed at A$2.23 a share, to raise A$94-million before costs.
The offer price represented a discount of 9.3% to Syrah’s closing price on September 3, and a 13.3% discount to the company’s ten-day volume weighted average share price.
The shares under the placement will represent some 12.4% of the company’s undiluted share capital following the share placement.
Following the completion of the share placement, Syrah will also offer eligible shareholders in Australia and New Zealand the opportunity to subscribe for up to A$15 000 worth of additional shares, also priced at A$2.23 a share.
The share purchase plan could raise an additional A$14-million, the company said.
Funds from the capital raise will be used to complete the ramp-up of the Balama project, in Mozambique, and to fund the operation through to positive cash flow. The funds will also be used to progress Syrah’s battery anode material strategy to the end of 2019, and to fund the evaluation of the vanadium resource at Balama, as well as corporate and general working costs.
Syrah in July revised its full year production targets at Balama to between 135 000 t and 145 000 t of graphite, down from the initial target of 160 000 t, while C1 cash operating costs have been forecast at between $430/t to $450/t, compared with the previous guidance of $400/t, following a ramp-up review of the Balama project.