PERTH (miningweekly.com) – ASX-listed Metals of Africa will raise A$9-million through a share placement to progress its graphite projects in Mozambique.
The company said on Monday that it had received commitments from institutional and sophisticated investors to take up 100-million fully paid ordinary shares in Metals of Africa, at 9c each.
The shares will be issued in two tranches, with the first consisting of more than 78.5-million shares, and falling within the company’s placement capacity. The second tranche of more than 21.8-million shares will require shareholder approval.
“This was a very heavily oversubscribed raising, which was strongly supported by existing shareholders. The high level of demand for the placement is a big tick for the work we’ve done to date at our graphite assets in Mozambique,” said Metals of Africa MD Cherie Leeden.
“The potential of the battery minerals industry is enormous and graphite is a key ingredient in all lithium ion batteries, arguably the most important battery of our time.
“We are advancing high-quality projects in the best graphite province in the world. The definitive feasibility study at the Montepuez project will be completed in December and the funds raised will allow us to rapidly start building a project team to develop the project and deliver value for shareholders,” Leeden said.
The feasibility study is earmarked for completion in the second quarter of 2017.