TORONTO (miningweekly.com) – Madagascar-focused graphite project developer Energizer Resources this week said that it had engaged an agent to conduct two placements to raise up to C$8.6-million.
The company, which is developing the Molo graphite project, on Thursday said it had arranged a brokered private placement with GMP Securities as the lead agent, for proceeds of up to C$8-million, through selling subscription receipts.
It had also launched a nonbrokered private placement on the same terms, for total proceeds of up to C$600 000. If the offering was fully subscribed, the company had agreed that a total of 125-million subscription receipts could be sold.
Each subscription receipt would be made up of one common share and half a warrant, with every whole warrant allowing the holder to buy another share for a term of 18 months.
The offering still needed TSX approval, among other conditions, with the first closing expected in early December.
The total proceeds would be held in escrow pending satisfaction of certain conditions.
Energizer in October announced that it had consolidated full ownership of its flagship Molo graphite project, after inking a binding memorandum of understanding with 25% interest holder Malagasy Minerals.
Energizer had also entered into a nonbinding letter of intent with Caterpillar Financial Services’ mining finance division regarding financing arrangements for the Molo project.
In the same span of weeks, Energizer had also commissioned and started a pilot plant at the project.
On Wednesday, the company announced that it had appointed engineering veteran Robin Borley as senior VP of mining development, effective December 1.