Talga cashed up for Nunasvaara trials

THE BOURSE WHISPERER: Talga Resources (ASX: TLG) is undertaking a combined capital raising totalling $3.1 million, the proceeds from which will be used to accelerate development of the company’s wholly-owned high-grade Nunasvaara graphite-graphene project in Sweden.

 

Talga Resources project locations in north Sweden. Source: Company announcement

 

The funds are to be raised via a combination of a fully underwritten non-renounceable rights issue and single tranche placement on the same terms.

The company said the proceeds will enable it to begin a maiden test mining program and construct/commission a pilot plant to process the first bulk samples from Nunasvaara.

This work is anticipated to take place concurrently with the scoping study the company already has underway.

“Given rapidly accelerating developments in global commercial markets for graphene, Talga has seized the opportunity to secure further funds and fast-track its work program by strongly capitalising the next stages of project development,” Talga Resources managing director Mark Thompson said in the company’s announcement to the Australian Securities Exchange.

“The company is delighted by the reaction of investors to our recent developments and pleased to offer this opportunity to shareholders at an exciting early stage.

“These funds will be used to move more rapidly into trial mining and pilot plant stages, while completing previously announced preliminary economic studies.

“Talga sees the underwritten support to accelerate our graphite-graphene development program as a strong endorsement and market vote of confidence.

“Additionally the placement introduces some new and strategic shareholders who share Talga’s vision of successful transition from explorer to near term graphite-graphene miner and processor.”

Talga indicated the funds raised via the entitlement offer and placement will be used to:

Accelerate development work on the Nunasvaara graphite-graphene project;

Fund a trial mining program and pilot plant to process a bulk sample and confirm new graphitegraphene production process operational on larger scale;

Provide commercially significant size samples of graphite and graphene for more advanced economic evaluations; and

For general working capital.

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Website: www.talgaresources.com