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The Australian company Metals of Africa has announced that it will raise 2.9 million US dollars through a share placement to fund the development of its Montepuez and Balama Central graphite projects in the northern Mozambican province of Cabo Delgado.
In a statement, the company said that the shares were priced at a fifteen per cent discount from a ten-day weighted average share price and that the placement has been oversubscribed. In addition, the company will offer all eligible shareholders the chance to buy up to 370,000 US dollars’ worth of shares at the same price.
The funds will be used for a feasibility study, bulk sample and metallurgical test work, and as general working capital.
Metals of Africa also stated that two companies involved in drilling and design services have agreed to accept half of their fees in shares.
According to the company’s managing director, Cherie Leeden, “the capital raising will strengthen the company’s balance sheet, enhance our ability to rapidly develop our world-class Montepuez and Balama Central graphite projects, and take advantage of the many opportunities currently presenting in the industry, including critical minerals for the lithium-ion battery supply chain and associated disruptive graphite technologies”.
She added, “our graphite projects have the potential to be very low-cost suppliers to the rapidly expanding lithium-ion battery anode market and our feasibility study works are aimed at delivering on that objective”.
The Montepuez project contains an estimated 6.3 million tonnes of graphite and 163,000 tonnes of vanadium oxide. In addition, the Balama project holds an estimated 1.7 million tonnes of graphite and 34,000 tonnes of vanadium oxide.
Graphite is a form of carbon that is highly valued due to its properties as a conductor of electricity. It is used in batteries and fuel cells and is the basis for the “miracle material” graphene, which is the strongest material ever measured, with vast potential for use in the electronics industries.
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