David Flanagan-led Battery Minerals has boosted its coffers with a $20 million capital raising to fund construction of its Montepuez graphite project in Mozambique.
Under the placement, the company issued 333 million shares at 6 cents each, with Hartleys and Morgans Corporate acting as joint lead managers.
The placement will be completed in two tranches, with the second tranche subject to shareholder approval.
Battery also plans to raise up to $5 million via a share purchase plan, which is expected to be completed in June, on the same terms as the placement.
The capital raising was a condition of a $US30 million ($40 million) deal announced earlier this month with private equity player Resources Capital Funds.
That deal is a mix of debt and equity funding, with a $US25 million loan at an interest rate of 10 per cent.
RCF will subscribe for $US5 million of Battery shares when the term sheet is executed.
Managing director Mr Flanagan said it was pleasing to secure the funding.
“Construction at Montepuez is already well-advanced,” he said
“We have ordered our long lead items and these will be delivered over coming months.
“We commissioned our crushing circuit last week.”
The company said the funds would be used for construction works being completed later in the year, mining license approvals and general working capital.
Shares in Battery were off 4.76 per cent at 6 cents each at 130pm AEDT.