Talga in $8.5m raising

West Perth-based junior miner Talga Resources has announced an oversubscribed placement raising $8.5 million to fund growth of its graphite and graphene technologies business.

Canaccord Genuity acted as the sole lead manager, and 13.1 million shares will be issued at a share price of $0.66, reflecting a 5.8% discount to Talga's share price.

The placement is set to strengthen Talga's register with the introduction of new institutional investors.

Following interest from institutional investors, the placement was oversubscribed.

Talga managing director Mark Thompson said he was keen to invite new shareholders to the Talga register, with the business to have a cash balance of $18.5 million.

"We welcome our new institutional shareholders to the Talga register in what we see as a maturing vote of confidence by equity markets in the long-term upside for Talga's global scale graphite-graphene material and technologies business," Mr Thompson said.

Demand for graphite is expected to grow dramatically as related technologies such as batteries become more heavily used with the uptake of electric vehicles.

Talga said it would invest heavily in business developement, particularly of lithium ion batteries, and development of cobalt projects, a product also used in batteries.

Cobalt project development would include drilling, exploration and metallurgy.

Talga shares fell 4.4 per cent to be 66 cents each at the close of trade today.