Photo by: Bloombeg
PERTH (miningweekly.com) – Graphite developer Magnis Resources has raised A$4-million through a share placement to sophisticated and institutional investors to fast-track the development of its Nachu project, in Tanzania.
Some ten-million shares would be issued under the placement, priced at 40c each.
“We are encouraged by the strong interest shown in our capital raising, which was done at a slight discount to the previous closing price. The board and management team are focused on bringing Nachu into production and we are currently working closely with our partners to achieve this goal in a tight timeframe,” said Magnis chairperson Frank Poullas.
Earlier this month, the company was granted a special mining licence for its Nachu project, which would allow it to proceed with the finalisation of funding arrangements.
A special licence was considered superior to a mining licence and was awarded to projects with an investment greater than $100-million. The special licence allowed for a larger area to be approved than under a regular mining licence, which was restricted to 10 km2.
The project was slated for first production in the fourth quarter of 2016.