PERTH (miningweekly.com) – ASX-listed EcoGraf will raise A$1.6-million through a share placement priced at 6.5c a share.
The company on Thursday said that it had received firm commitments from sophisticated and professional investors for the placement of 24.6-million shares, which will be conducted under the company’s existing placement capacity.
EcoGraf was hoping to raise an additional A$500 000 through a share purchase plan, also priced at 6.5c a share, offering shareholders the opportunity to subscribe for up to A$30 000 worth of new shares in the company.
Funds raised will go towards the further development of EcoGraf’s battery graphite facility, in Western Australia, including finalising offtake arrangements with priority customers in Europe and Asia, securing lender approvals for the proposed $35-million debt financing, and completing engineering, procurement, construction and operations planning arrangements.
The battery graphite facility is expected to cost an initial $22.8-million to develop a 5 000 t/y operation, followed by a further $49.2-million investment to increase production to 20 000 t/y of battery graphite.
The project will import natural flake graphite from existing producers and convert it to battery graphite, with the final product to be exported to customers in Asia, Europe and the US.