Graphex raises $2.6m for Chilalo

Graphex Mining has tapped investors for $2.6 million as it moves ahead with development of its Chilalo graphite project in Tanzania, amid legislative changes to how the country's government receives mining royalties.

Perth-based Graphex raised the funds through the placement of about 12 million shares to professional and sophisticated investors at 22 cents a share.

The proceeds will be used to fund ongoing work at Chilalo, including finalisation of finance and offtake agreements.

“We are pleased to have received such strong support for the placement, both from existing shareholders and new investors,” Graphex managing director Phil Hoskins said.

“With the placement finalised, our focus is firmly on concluding finance and offtake agreements with the CN Docking led syndicate, the completion of which is expected to see Graphex free carried to production.”  

In the wake of the Tanzanian government’s plans to make changes to its mining and exporting laws in the country, Graphex won back the support of its investors earlier this month after striking an equity investment agreement with its joint venture partner, CN Docking Joint Investment & Development Company.

Graphex shares were unchanged at 25 cents each at the close of trade.