PERTH (miningweekly.com) – ASX-listed Talga has taken the decision to increase the size of its recently completed share purchase plan (SPP) from the A$10-million targeted in December, to some A$30-million, after the placement was heavily oversubscribed.
The company on Wednesday revealed that it had received applications for some A$53.3-million shares, at an issue price of A$1.45 a share under the SPP.
Given the strong support from shareholders, and the potential to bring forward a number of development opportunities and to further de-risk project development, the company has taken the decision to increase the size of the SPP to some A$30-million.
“To honour the support of our shareholders, the board has decided to accept SPP oversubscriptions to allow participants to partake in a reasonable entitlement considering the significant number of applicants,” said non-executive chairperson Terry Stinson.
MD Mark Thompson said that the proceeds from the SPP and the recently completed institutional placement provided Talga with significantly enhanced capability to grow the company into a world-class provider of low emissions, high performance battery materials.
“We are excited to commence early stage works on our Swedish flagship project and accelerate the development and commercialisation of the full range of Talnode products, including our silicon and solid state anodes,” he said.
The increased funding will go towards completion of the 25 000 t trial mine at Niska South, and the subsequent production of up to 5 000 t of commercial Talnode product samples will fund the start of early stage infrastructure work and will secure long-lead items for the start of a 19 000 t/y anode project at Vittangi Anode, planned to start in 2023, and will accelerate the development and commercialisation of the Talnode products.
The SPP shares will be issued on January 27, and will start trade on January 28. More than 20.7-million new shares will be issued, representing 7.3% of Talga’s ordinary shares on issue prior to the SPP.