Battery Minerals has received commitments to raise a further $20 million for its Montepuez graphite project in Mozambique, adding to the $US30 million ($40 million) debt and equity package secured earlier this month from Resource Capital Funds (RCF).
The latest placement involved 333.33 million shares at 6 cents per share, with an option allowing investors to receive one listed 10 cent option for every two shares they subscribe for (a ‘one-for-two’ option) with a July 2023 expiry. The placement will take place across two tranches, one in May (183.6 million shares) and another in June (149.7 million shares).
Battery Minerals has received considerable investor interest in the Montepuez project, which is expected to start graphite flake concentrate production and shipping by the first quarter of 2019 at a rate of 45,000-50,000 tonnes a year (t/y).
The company also secured an oversubscribed $20 million placement in December last year, and announced that throughout December and January 2018 it had secured offtake agreements totalling over 80 per cent of annual production.
Commenting on the latest raising, Battery Minerals managing director David Flanagan said it marked another step for the company.
“We were overwhelmed with offers from investors who were attracted to the short lead time to production and cashflow,” Flanagan said.
“Construction at Montepuez is already well-advanced. We have ordered our long lead items and these will be delivered over the coming months.”