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Syrah raises cash to finance Balamce FS

Syrah raises cash to finance Balamce FS

Photo by Bloomberg

13th December 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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JOHANNESBURG (miningweekly.com) – Graphite hopeful Syrah Resources has raised some A$35-million in capital through an institutional equity placement.

Under the placement, Syrah offered some 13.7-million shares, at a price of A$2.55 each to institutional investors in certain jurisdictions.

The company said on Friday that the capital would be sued to finalise a feasibility study on the Balama graphite project, in Mozambique, which was scheduled for the first quarter of next year.

Funds would also be used to pre-order long-lead items for the project and to fund early development work on site. The capital would also be used to fund working capital requirements and corporate overheads.

A recently completed scoping study for the Balama West graphite project placed a $91.6-million price tag on the development of a 1.2-million-tonne-a-year mine in Mozambique.

The operation would have an initial seven-year mine-life, and Syrah stated on Monday that the company would likely be able to sell about 220 000 t of graphite in the first year of production.

Edited by Creamer Media Reporter

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