THE BOURSE WHISPERER: Battery Minerals (ASX: BAT) has received commitments from institutional, sophisticated and professional investors to raise $20 million.
Battery Metals said the Capital Raising was oversubscribed, explaining it comprises of $19.5 million by way of placement and $500,000 in commitments under a drilling-for-equity arrangement.
The company received commitments from its drilling contractor, Mitchell Group Holdings, to provide drilling services in return for equity, on the same terms as the placement.
Under the Placement, Battery Metals will issue approximately 325 million shares at six cents per share in two tranches to professional, institutional and sophisticated investors.
Each New Share will be issued with one free option which will be exercisable at ten cents on or before 31 July 2018.
“This capital raising is a key milestone in the Company’s strategy to become a graphite supplier to the lithium battery industry Battery Minerals executive chairman David Flanagan said in the company’s announcement to the Australian Securities Exchange.
“The overwhelming support we have received from investors around the world reflects the quality of our project and its outstanding potential to tap into the lithium battery market.
“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.”
Battery Minerals has commenced work at its Montepuez and Balama graphite projects in Mozambique.
At Montepuez, detailed grade control drilling is underway to underpin daily mining plans ahead of the anticipated grant of a mining lease, which the company expects later this year.
Final approvals are due in the March Quarter 2018 to facilitate the scheduled start of construction in April 2018.
Battery Metals indicated it is on track to commence mine commissioning in the December Quarter, 2018 with first graphite concentrate exports scheduled for the March Quarter, 2019.
The company is also working to fast-track a Definitive Feasibility Study (DFS) at its Balama Central project, where a recently completed Concept Study highlighted the project’s high grade nature and strong fundamentals.
Battery Metals has interpreted the results to suggest the project has potential to, in time, become a world-leading graphite mine.
Battery Metals aims to complete the Balama DFS in mid-2018.