Syrah Resources (ASX:SYR) has banked roughly $98 million following the completion of a non-renounceable entitlement offer to support operations at its Vidalia Active Anode Material facility in the US.
The retail component of the one-for-10.2 pro rata entitlement offer closed at 5pm AEDT on 3 April 2024, and will see roughly 37 million new shares issued at $0.55 per share on 10 April 2024. The new shares are scheduled to begin trading on the ASX on 11 April.
Syrah, which has a $442.53 million market capitalisation, says the proceeds, coupled with its existing cash balance, will be used to fund operating costs and an operating reserve account associated with its active anode material (AAM) Vidalia facility in Louisiana, US, and a loan with the US Department of Energy (DOE).
The funds will also be put towards other reserve accounts associated with the facility and DOE loan, transitioning activities on the Vidalia further expansion project to achieve a final investment decision, working and sustaining capital at its flagship Balama Graphite Operation in Mozambique, transaction costs of the offer, and for general corporate purposes.
According to Syrah, it received valid applications from eligible retail shareholders for about 3 million new shares, while roughly 34 million of the new shares — representing entitlements that were not taken up by eligible shareholders — will be allotted to the sub-underwriters of the offer.
Syrah Resources is a minerals and technology company focused on its flagship Balama Project in Mozambique and downstream AAM Facility in the US.
Write to Adam Drought at Mining.com.au
Images: Syrah Resources
