JOHANNESBURG (miningweekly.com) – ASX-listed Battery Minerals has received commitments from institutional, sophisticated and professional investors to raise A$20-million to fund its next phase of growth at its Mozambique-based graphite projects.
Some A$19.5-million is being raised through a share placement at 6c and A$500 000 through a drilling-for-equity arrangement, with the proceeds fully funding the drilling programme and the planning and early development works at the Montepuez graphite project and accelerating the definitive feasibility study (DFS) at the Balama graphite project.
“We have received a huge response to our strategy to develop a project with low capital costs, limited funding requirements and a short lead-time to production.
“This approach will enable us to maximise financial returns and minimise risks and time delays, enabling us to capitalise on the huge opportunity unfolding in the energy sector as quickly and efficiently as possible,” explained Battery Minerals executive chairperson David Flanagan.
Battery Minerals is progressing significant work programmes at both its Montepuez and Balama graphite projects.
At Montepuez, detailed grade control drilling is being completed to underpin daily mining plans ahead of the grant of the mining lease, which is expected later this year.
Mine commissioning is expected during the December quarter of 2018, with first graphite concentrate exports scheduled for the March quarter in 2019.
Battery Minerals is also fast-tracking the completion, by mid-2018, of the DFS at its Balama central project, where a recent concept study completed on Balama highlighted its high-grade nature and strong fundamentals and its potential to become a world-leading graphite mine.
Under the placement, Battery Minerals will issue about 325-million shares at 6c a share in two tranches to professional, institutional and sophisticated investors, with commitments received from its drilling contractor Mitchell Group Holdings to provide drilling services in return for equity, on the same terms as the placement.