PERTH (miningweekly.com) – ASX-listed explorer Talga Resources on Wednesday announced that it would raise some A$3.1-million to accelerate the development of its Nunasvaara graphite-graphene project, in Sweden.
The junior company said that it would undertake a fully underwritten one-for-ten non-renounceable entitlement offer to raise the first A$2.1-million. A maximum of 10.5-million new shares, and 5.2-million options would be issued under the entitlement offer.
The company had also received commitments from sophisticated investors to subscribe for a further five-million ordinary shares, at a price of 20c a share, to raise A$1-million.
For every two shares subscribed, the investors would receive one free attaching option, which would have an exercise price of 35c each and an expiry date of November 2015.
Talga MD Mark Thompson told shareholders that given the rapidly accelerating development in the global commercial market for graphene, the company had seized the opportunity to secure further funds and fast-track its work programme.
“These funds will be used to move more rapidly into trial mining and pilot plant stages, while completing previously announced preliminary economic studies.”
Thompson said that the company perceived the underwritten support to accelerate its development programme as a strong endorsement and market vote of confidence.
“Additionally, the placement introduces some new and strategic shareholders who share Talga’s vision of successful transition from explorer to near-term graphite-graphene miner and processor.”
The Nunasvaara deposit currently contains a Joint Ore Reserves Committee-compliant resource of 7.6-million tonnes, at 24.4% graphite, for some 1.85-million tonnes of contained graphite.