PERTH (miningweekly.com) – ASX-listed Mineral Commodities (MRC) is hoping to raise up to A$15.7-million in additional funding through a share placement and entitlement issue, to finance its growth strategies.
MRC on Monday told shareholders that it had received firm commitments from its largest shareholder, Au Mining, for the placement of 23.3-million shares, at a price of 7.5c each, to raise an initial A$1.75-million.
The placement was completed on September 29, and the shares will be issued under the company’s exiting placement capacity.
MRC will also undertake a non-renounceable entitlement offer of one new share for every three shares held by shareholders. Based on the current capital structure, up to 186.3-million shares could be issued, raising a further A$14-million.
The entitlement issue will be partly underwritten.
The placement price of 7.5c a share represented an 18% discount to MRC’s last closing price on the ASX, and a 16% discount to the company’s 30-day volume weighted average share price.
Funds would go towards MRC’s strategic growth plans within its heavy minerals division prior to medium-term future growth projects within its battery minerals division.
The heavy minerals division strategy includes a third primary concentrator plant, which would increase overall plant capacity and increase in concentrate production, downstream integration to target higher valued finished products, and studies for future bulk mining and resource and reserve development.
In its mattery minerals division, MRC is looking at a battery anode pilot plant using feed from the Munglinup and Skaland graphite projects, and a prefeasibility and definitive feasibility study on a commercial battery anode plant.