Battery in strongly supported $20m raising

Battery Minerals has announced a $20 million capital raising, primarily through a strongly supported share placement, ensuring the company can progress at its graphite projects in Mozambique.

Perth-based Battery will raise $19.5 million via the issue of 325 million shares at 6 cents in two tranches to professional, institutional and sophisticated investors.

Each share will have one free option that is exercisable at 10 cents before July 31 2018.

The remaining $500,000 will come through a drilling-for-equity arrangement with drilling contractor Mitchell Group Holdings on the same terms as the placement.

Hartleys and Morgans Corporate acted as joint lead managers to the placement.

Funds raised will be used at Battery’s Montepuez and Balama graphite projects.

The company is completing detailed grade control drilling at Montepuez, with commissioning of the site expected in the December quarter next year.

Battery is hopeful of fast-tracking the completion of a definitive feasibility study at its Balama project after positive results from a recent concept study.

It said the capital raising was heavily oversubscribed with its largest shareholder maintaining its 12.6 per cent stake.

“This capital raising is a key milestone in the company’s strategy to become a graphite supplier to the lithium battery industry,” executive chairman David Flanagan said.

“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 shares finished down 11.9 per cent at 6.7 cents a share.