Bat­tery’s $20m

The West Australian - - WEST BUSINESS -

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.

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