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- BlackEarth Minerals (BEM) has closed its heavily oversubscribed placement, after raising $4.89 million proceeds
- The company will issue 36,134,22 new shares to domestic and international institutional and sophisticated investors at 13.5 cents per share
- After the placement, BlackEarth Minerals’ cash balance has increased to approximately $7.4 million
- Proceeds will fund progression of the definitive feasibility study for the company’s Maniry Graphite Project, and other development plans
- BlackEarth Minerals is down 3.23 per cent and trading at 15 cents per share
BlackEarth Minerals (BEM) has closed its heavily oversubscribed placement, after raising $4.89 million in total proceeds.
The company’s placement enjoyed significant support from both new and existing investors, who subscribed for over 36 million new fully paid ordinary shares.
BlackEarth will issue 36,134,220 new shares to domestic and international institutional and sophisticated investors around April 20, 2021. At an issue price of 13.5 cents per share, the placement will raise $4,878,119 before costs for the company.
After completion of the placement, BlackEarth Minerals’ cash balance will have increased to approximately $7.4 million.
The proceeds of the placement will primarily fund the progression of a definitive feasibility study for the company’s Maniry Graphite Project. Some funds will also go towards the continuation and conclusion of an extensive drilling and exploration program at the Maniry Project, and other high-grade projects in Madagascar.
Proceeds will also be used for other development plans, such as development of a plant design for operations in Madagascar.
BlackEarth Minerals’ Managing Director, Tom Revy, expressed the company’s delight with the level of investor interest in the fundraising event.
“BlackEarth has previously demonstrated that product from our projects in Madagascar is most suited for use in the EV and alternative energy markets, and the completion of this raising will go a long way to completing our plans for construction of a plant in Madagascar and also assist us to conclude our downstream processing plans in conjunction with industry-leading partners,” he said.
“This is an exciting time in the development of the company, and we look forward to providing our shareholders with updates of our continued growth throughout 2021,” he added.
BlackEarth Minerals is down 3.23 per cent, trading at 15 cents per share at 3:48 pm AEST.
