Lincoln raising $1.7 million to fuel graphite exploration 

Lincoln Minerals (ASX:LML) is looking to accelerate graphite exploration in South Australia after receiving firm commitments to raise $1.7 million through a placement led by Sequoia Wealth Management. 

The $9.94 million market capitalisation company plans to issue more than 283 million fully paid ordinary shares at $0.006 a pop — a 16.7% discount to the 15-trading day volume weighted average price (VWAP) of ordinary shares prior to today’s announcement. 

Lincoln reports the funds will be used to support drilling campaigns at both its flagship Kookaburra Gully mining lease and Koppio lease. 

Drilling is expected to confirm ‘strong’ graphite grades and increase and upgrade the company’s mineral resource, which was delivered following the completion of a Koppio drilling campaign in March this year.  

Lincoln reports the placement is ‘strongly’ supported by the company’s  ‘major’ shareholders Bai Fu Xin Inheritance Group, which will maintain its 26.83% interest in Lincoln, and Vaucluse Investment Holdings, which is expected to increase its interest to 18.10%.

The company’s management and directors have subscribed for $61,200 in the placement, with the settlement scheduled for 3 November 2023. 

The announcement follows the Chinese government’s decision on Friday (20 October 2023) to reduce its exports of graphite amid increasing international trade tensions between China and the Western world. 

Shares in Australian graphite producers and explorers surged following this decision. On Tuesday 24 October, shares in Lincoln increased 14.285% to close at $0.008. 

Lincoln Minerals Chair Yoyo Zhang says the company continues to work on updating the 2017 Feasibility Study completed for Kookaburra Gully and is committed to further exploration of the project to ensure it can uncover its full potential for future development.

Lincoln Minerals is focused on the development of its Kookaburra Gully Graphite Project in the Eyre Peninsula of South Australia — Australia’s foremost graphite province. 

The project is located about 35km north of Port Lincoln.

Write to Adam Drought at Mining.com.au

Images: Lincoln Minerals
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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.