- BlackEarth Minerals (BEM) has completed a bookbuild and secured commitments for a $1.4 million placement
- More than 28 million fully-paid ordinary shares will be issued to institutional and professional investors at five cents each
- BlackEarth will use the funds to begin work at the Maniry Graphite Project in Madagascar with aims to progress the definitive feasibility study
- The company will also use the money for general working capital purposes such as geotechnical work, metallurgical testing, and independent studies
- Shares are expected to be issued on or around October 8
- BlackEarth has ended the day 15.4 per cent in the red with shares trading for 5.5 cents each
BlackEarth Minerals (BEM) has completed a bookbuild and secured commitments for a $1.4 million placement.
The company entered a trading halt on October 1 but did not disclose how much it would be raising.
All up, 28,413,880 new fully-paid ordinary shares will be issued to institutional and professional investors at five cents each.
This price represents a 9.2 per cent discount to the five-day volume-weighted average price.
BlackEarth will use the funds to begin work at the Maniry Graphite Project with aims to progress the definitive feasibility study.
The company will also use the money towards general working capital purposes such as geotechnical work, metallurgical testing, and independent social, community, and environmental studies.
The Maniry Project lies in Madagascar and spans an area of approximately 143 square kilometres.
Previous exploration has revealed that its hosts a large-scale graphite mineralised system which remains open in the northwest, as well as identifying at least 34 large-scale zones of outcropping graphite mineralisation.
Results have peaked at 50.78 per cent total graphitic carbon (TGC), grades typically sit between seven to 20 per cent TGC.
“The Board of BEM is excited about a number of developing opportunities for the company and these funds will be utilised specifically for the purpose of advancing the development and growing the value of our existing assets,” Managing Director Tom Revy said.
“We’re pleased with the renewed and growing interest in the graphite sector and we believe our Donnelly River assets also offer a unique opportunity to shareholders. Technical and other resources will be applied to assessing these assets in the immediate term,” he added.
Shares are expected to be issued on or around October 8.
BlackEarth has ended the day 15.4 per cent in the red with shares trading for 5.5 cents each in a $7.387 million market cap.