PERTH (miningweekly.com) – ASX-listed junior Magnis Resources has raised A$6.5-million through a share placement to sophisticated and institutional investors to advance its Nachu graphite project, in Tanzania.
Magnis placed 26-million shares, at 25c each, to raise the funding.
“We are encouraged by the strong interest shown in our capital raising from both local and overseas investors. The board and management team are focused on bringing Nachu into production in the second half of 2016; we are currently working closely with our partners to achieve this goal,” said Magnis chairperson Frank Poullas.
In December, Magnis signed an 80 000 t/y binding agreement with vertically integrated Sinoma for graphite offtake from the Tanzania operation, which was followed by a 100 000 t/y agreement in place with China-based Sinosteel in January.
In March, Magnis executed a memorandum of understanding with Sinoma for the financing, design and construction of the Nachu graphite project.