Graphex in $2.5m raising

Graphite explorer Graphex Mining has raised $2.5 million to fund an updated feasibility study and complete finance and offtake arrangements at its Chilalo project in Tanzania.

Perth-based Graphex has issued 8.7 million shares at 28 cents each, representing an 8.2 per cent discount, with demand from professional and sophisticated investors.

Bridge Street Capital Partners was the lead manager to the placement.

Managing director Phil Hoskins said proceeds from the placement would be used to advance the Chilalo project.

“The placement ensures that the company is sufficiently funded to complete the updated feasibility study and to negotiate the preferred project finance structure from a position of strength,” he said

“We were also mindful of capping the placement at 12.5 per cent of issued capital to preserve the company’s tight capital structure.”

Graphex shares were down 4.9 per cent at 29 cents each at the close.