18/03/2015 - 09:51

Talga to raise $5m for graphite projects

18/03/2015 - 09:51

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Perth-based minerals explorer Talga Resources has received firm commitments for a discounted placement to raise $5.5 million.

Talga to raise $5m for graphite projects

Perth-based minerals explorer Talga Resources has received firm commitments for a discounted placement to raise $5.5 million.

Talga will offer domestic and international institutions, as well as sophisticated investors, a placement of 13.7 million shares valued at 40 cents each.

The company said the funds raised would be used to develop its five graphite projects in Sweden, to construct a demonstration graphene production plant in Germany, and for general working capital.

Talga recently completed a scoping study on its Vittangi project in Sweden, which suggested it would cost $29 million to bring the graphite mine into production.

Managing director Mark Thompson said the capital injection would provide means to accelerate and expand opportunities to commercialise graphene through strategic relationships with industry.

The placement will increase Talga’s issued capital by about 11 per cent.

Canaccord Genuity and Far East Capital acted as joint lead managers to the placement.

Talga shares were 5.2 per cent lower at 45 cents per share at 9:40am.

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