BlackEarth Minerals (ASX:BEM) raises $6.8 million from “overbid” placement

• BlackEarth Minerals (BEM) raises $6.8 million from a “heavily overbid” share placement
• The company will issue about 50.65 million new shares at an issue price of 13.5 cents each, representing a 12.9 per cent discount to the closing price on January 19
• The funds will used to complete the definitive feasibility study for its Maniry graphite project in Madagascar and other development and exploration plans
• BlackEarth says the plans include continuing an extensive drilling and exploration program at the Maniry project’s high-grade Razafy NW area and adding to the resource inventory at both Razafy and Razafy NW
• BEM shares are down 12.9 per cent at 13.5 cents

BlackEarth Minerals (BEM) has successfully ratted the tin for $6.8 million in a “heavily overbid” share placement to institutional and sophisticated investors.

The company will issue about 50.65 million new shares at an issue price of 13.5 cents each, representing a 12.9 per cent discount to its closing share price on January 19.

BlackEarth said proceeds from the capital raising would predominantly be used to complete the definitive feasibility study for its flagship Maniry graphite project in Madagascar and other development and exploration plans.

The plans include continuing an extensive drilling and exploration program at the Maniry project’s high-grade Razafy NW area, adding to the resource inventory at both Razafy and Razafy NW and front end engineering and design and purchasing of long lead items for Maniry.

Funds would also go towards development of its downstream expandable graphite project in India.

“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,” Managing Director Tom Revy said.

“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.”

BEM shares were trading 12.9 per cent lower at 13.5 cents at 3:19 pm AEDT.