- Aussie-based Magnis Energy has just secured $8 million in funding from Dubai-based financier Negma Group
- Over 12 months, Negma will receive an eight per cent discount subscription in Magnis shares at the start of each month — with option to increase subscription by $4 million
- Negma has particular interest in Magnis Energy’s diverse portfolio, including high quality graphite mining and lithium purification
- Magnis’ shares on the ASX today opened at 18 cents apiece and have since climbed 1.39 per cent to 18.3 cents per share
Graphite miner and lithium producer Magnis Energy just secured $8 million in funding, bankrolled from a Middle Eastern financier.
Negma Group, based in Dubai, pledged the investment to take place over 12 months with option to increase the investment by a further $4 million.
The shares will be issued to Negma in monthly tranches priced at an eight per cent discount to their previous ten-day volume weighted average price. Magnis’ shares on the ASX today opened at 18 cents apiece and have since climbed 1.39 per cent to 18.3 cents per share.
“At Negma we constantly look for undervalued opportunities in this sector and we believe that this is the best time to become part of Magnis shareholder family,” Negma Chairman Aboudi Gassam said.
“Magnis has built a unique portfolio from mining to Li-ion [lithium-ion] plants,” he said.
One of Magnis’ flagship projects is the Nachue Project in South East Tanzania. The wholly-owned project has yielded high ranking grades of graphite for the company that has reached levels of 99.6 per cent.
“We look forward to working with the experienced team in Magnis and assisting with the funding of their projects,” Aboudi added.
All funding from Negma will be used as working capital for Magnis projects. Subject to further shareholder approval, Magnis has interest to issue an additional 4 million unlisted options exercisable at 40 cents per share.
These options would expire at the end of April 2021.
“We have been looking for the best option to avoid dilution at these current pricing levels while securing working capital for the next 18 months and we believe this option is ideal for us,” Magnis Managing Director Marc Vogts said.
“Negma has been excellent to deal with and we look forward to working closely together,” he said.
Negma’s subscription of Magnis shares will be issued at the start of each month.