PERTH (miningweekly.com) – Graphite developer Syrah Resources has successfully raised A$74-million of a targeted A$110-million through a share placement and the institutional component of a pro-rata accelerated nonrenounceable entitlement offer.
“We are delighted with, and grateful for, the strong level of support shown by our existing institutional shareholders,” Syrah MD and CEO Shaun Verner said on Thursday.
Some 7.4-million new shares were offered to eligible institutional investors, at a price of A$3.38 each, while the institutional component of the entitlement offer was done on the basis of one new share for every 10.5 shares held, also priced at A$3.38 each.
Syrah noted that eligible retail shareholders would be invited to participate in the retail component of the 1-for-10.5 pro rata accelerated nonrenounceable entitlement offer, which would also be priced at A$3.38 each.
The retail offer would open on September 25 and would close on October 5.
Syrah has previously said that funds raised would be used to develop the Balama graphite project, in Mozambique, which is expected to produce an average of 365 000 t/y of graphite concentrate during its first ten years of production, to deliver free cash flow of $160-million a year.