Following Battery Minerals’ $20 million capital raising earlier this month, extensive recruitment is now under way at its Montepuez graphite project.
The company has appointed two design engineering companies, DRA and Minnovo, to lead the project, and has placed an order for a primary crusher that is due to be completed by March 2018. DRA and Minnovo will carry out extensive design work to complete the Montepuez process plant.
According to company executive chairman David Flanagan, the heavily oversubscribed $20-million placement reflects the financial strength of the project. Investors, he said, showed strong support thanks to a short 13-month lead time and attractive $US42.3 million ($55.9 million) operational cost.
“We have now secured a primary crusher with capacity of more than twice Montepuez’ requirements, and sufficient for planned expansion,” he said.
“The lower than expected cost of the crusher augurs well for the company’s ability to build the project within the budget estimated in the value engineering study.”
Battery Minerals is expected to ship its first graphite exports from Montepuez by March 2019.
The company is also advancing a feasibility study at a potential second project, Balama, which is expected to be completed by the second quarter of 2018. Infill drilling commenced at the site earlier this month, which is located near the larger Syrah Resources project of the same name.