BlackEarth Minerals (ASX: BEM) has successfully completed a ‘heavily overbid’ placement to raise $6.84 million for its Maniry Graphite Project in Southern Madagascar along with its downstream processing JV in India.
The company reports that it completed a bookbuild and secured commitments from existing and new domestic and international institutional and sophisticated investors to subscribe for 50,650,955 new, fully-paid ordinary shares at an issue price of $0.135 per share, resulting in gross proceeds before costs of $6,837,879.
Commenting on the placement, BlackEarth Minerals Managing Director Tom Revy, said: “The Board of BEM is delighted with the exceptional level of investor interest in this fund raising event, reflective of the strong current thematic in the graphite sector.
“we are seeing substantial interest in our project by both local and overseas institutional investors, who participated in the raising, including those focused on ESG”
Following recent releases on the progress of the Maniry Project together with the significantly enhanced financials, we are seeing substantial interest in our project by both local and overseas institutional investors, who participated in the raising, including those focused on ESG.
Management remains excited with the development progress of both its Maniry Graphite Project and its Indian JV expandable graphite plans, and the key milestones that will be reached in 2022.”
The company plans to use the funds towards completing its definitive feasibility study for the Maniry Graphite Project along with a series of other priorities including further drilling and exploration at Maniry’s ‘high grade’ Razafy NW area, advancing downstream processing development in India with JV partner Metachem, and purchase of long lead items post the completion of the Maniry DFS.
The placement is not subject to shareholder approval, with new shares ranking equally with BlackEarth’s existing fully paid ordinary shares.
Images: BlackEarth Minerals NL
