PERTH (miningweekly.com) – ASX-listed graphite miner and manufacturer Valence Industries would look to raise about A$15-million in an institutional placement and share purchase plan (SPP) to fund the Phase 2 expansion of its operations.
Valence on Thursday reported that it would issue more than 17.1-million shares, at a price of 70c each, to institutional and sophisticated investors, to raise an initial A$12-million.
An SPP would then be offered to all eligible shareholders, also priced at 70c a share, to raise a further A$3-million.
The offer price of 70c a share was a 13.6% discount to Valence’s last closing price, and was equal to the company’s 20-day volume weighted average price.
Valence noted that the funds raised from the placement and the SPP would be applied to advance the company’s growth programmes, including optimising a feasibility study on the Phase 2 expansion, which would see production increase from 14 000 t/y to 60 000 t/y.
The company would also revise the mineral resource on the completion of infill drilling, optimise the proposed Uley Pit 2 and mining plan, assess the required miner processing and manufacturing changes for the Phase 2 plant, and assess the graphite flake size and product characteristics of the new grades of material and the potential applications and associated market opportunities.