PERTH (miningweekly.com) – ASX-listed EcoGraf will raise A$54.6-million through a share placement to institutional, sophisticated and professional investors to fund the Phase 1 construction of its commercial-scale battery anode material purification facility, in Western Australia.
The company told shareholders that it had received firm commitments for the placement of some 91-million shares, at a price of 60c each. The offer price represented a 2.2% discount to EcoGraf’s ten-day volume weighted average share price, and a 21% premium to its 15-day volume weighted average price.
The new shares will be issued under the company’s existing placement capacity, and will not require shareholder approval.
The proceeds from the placement will be used to fund the construction and operational commissioning of the Phase 1 battery anode material purification facility, as well as to advance the battery anode material recycling programmes and to finalise debt financing arrangements for the Epanko graphite mine.
The Phase 1 battery anode material purification facility will have an initial production capacity of 5 000 t/y, and once commissioned, will be expanded to reach 20 000 t/y.
EcoGraf recently authorized GR Engineering to undertake works for the detailed engineering design for the construction of this new facility, which will use EcoGraf’s proprietary purification technology to deliver electric vehicle, lithium-ion battery and anode manufacturers a source of high quality and sustainably produced battery anode material products.