Talga raises $6m

Graphite explorer Talga Resources has raised $6 million from an oversubscribed share purchase plan, in excess of the $3 million target announced last month.

The company said on November 15 it was looking to raise a combined $6.25 million from a placement and SPP, at an offer price of 44 cents per share.

Talga has raised additional capital of $3 million from the SPP, which it said would be used to enhance the company’s financial flexibility as it progresses its short and medium-term plans, including the scale up of its lithium-ion battery anode product (Talnode-C) for customer qualification.

The board had decided all eligible shareholders who applied for shares under the offer would receive their full allocation of shares.

“Our aim with the SPP was to provide existing shareholders the opportunity to increase their holdings on the same terms as the recently completed institutional placement - with proceeds used towards funding the last stage of development prior to planned project funding for the Vittangi Graphite Anode Project,” Talga chairman Terry Stinson said.

“The success of the SPP clearly demonstrates the continued strong support from our shareholders as we progress the execution of our vertically integrated battery anode and graphene additives business strategies.”

The issue price of the new shares will remain at 44 cents and are expected to be issued to applicants on December 13.

Talga’s shares were down 5.32 per cent to trade at 44 cents, as at 4:10pm AEDT.