MRL raises $4m for graphite project

Junior explorer MRL Corporation has received firm commitments for a $4 million capital raising to fund development of mine shafts at its graphite tenements in Sri Lanka.

The one-for-two placement at 5.5 cents each was bid for by strategic investors and high net worth individuals, according to lead manager Far East Capital.

MRL managing director Craig McGuckin said the company was now well funded and set to monetise the value of its high-grade graphite assets.

“We are now well on the path to production and cashflow from graphite production,” he said.

“We also have strong potential to enjoy substantial sales growth on the back of the promising graphene market and we look forward to pursuing this significant opportunity.”

MRL will use the funds to develop mine shafts at its Sri Lankan graphite tenements, which cover 6,300 hectares, with production on track to start later this year.

It anticipates commercial sales to begin next year.

Shares in MRL were 8.6 per cent higher to 6.3 cents each at the close of trade.