David Flanagan’s Battery Minerals has raised $20 million in an oversubscribed share placement to help fund development of its Montepuez graphite project in Mozambique.
The raising, at 6¢-a-share, comes with a free one-for-two option exercisable at 10¢ by July 2023. Battery also wants to raise a further $5 million through a share purchase plan on the same terms.
The company revealed its biggest shareholder Farjoy (12.5 per cent) had committed $5 million to the second tranche of the placement. Mr Flanagan said the raising marked another step towards production and cashflow from Montepuez.
“We were overwhelmed with offers from investors who were attracted to the short lead time to production and cashflow,” he said.
Commissioning is expected in the first quarter of calendar 2019 with first shipment in the second quarter.
Battery shares closed off 0.4¢, or 6.4 per cent, to 5.9¢ after emerging from a trading halt.