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Metals Australia to raise $400K for Canadian graphite project

Materials
ASX:MLS      MCAP $14.14M
31 October 2019 06:13 (AEST)

Base metals explorer Metals Australia is looking to raise $400,000 to fund developments at its graphite project in Canada through a private placement.

At the Lac Rainy project “recent drilling has demonstrated the size of this potentially world-class resource,” according to company Director Gino D’Anna.

The graphite project is in proximity to five fellow well-established and developed graphite projects. One of these is the Lac Knife project which has a resource of roughly 9.6 million tonnes at a 14.77 per cent grade of graphitic carbon.

Specific testing is currently underway at Metals Australia’s Lac Rainy project to determine target areas.

“We remain encouraged by what has been identified at Lac Rainy which continues to deliver in all areas of grade, thickness and potential strike and depth extensions,” Gino said.

“The company’s corporate objective is to define a deposit of sufficient tonnage in the 15-20% Cg range similar to the nearby Lac Knife Deposit,” he added.

Eligible shareholders will have the opportunity to buy into the company at 0.16 cents per share through the issue of 250 million shares.

On top of this, those buying shares will be offered a free attaching option on a one for one basis for $0.0035 per option.

Metals Australia’s share price is remaining flat today, currently trading for 0.2 cents each.

Following the announcement to the market, Metals came out of a suspension from official quotation.

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