- Junior miner Renascor Resources (RNU) has successfully tapped investors for $3.6 million to fund work at its South Australian graphite and gold projects
- The company is placing just under 325 million new shares to professional and sophisticated investors to raise the funds
- New shares are priced at 1.1 cents each and come with one free attaching option for every two shares bought
- The company will use the cash boost to fund sample preparation, metallurgical testing and marketing work at its Siviour Battery Anode Material Project
- Some of the funds will go towards ground sampling, induced polarization (IP) survey work and follow-up drilling at the Carnding Gold Project
- Renascor shares are slipping towards the placement price this morning, currently down over 14 per cent and worth 1.2 cents each
Renascor Resources (RNU) has successfully tapped investors for $3.6 million to fund work at its South Australian graphite and gold projects.
The company told shareholders this morning it will be placing just under 325 million new shares to professional and sophisticated investors to raise the cash. New shares will be priced at 1.1 cents a pop and come with one free attaching option for every two shares bought.
These options expire in two years’ time and are exercisable at two cents each.
Renascor said the new funds will primarily be used for work at its Siviour Battery Anode Material Project and the Carnding Gold Project.
According to the company, Siviour holds the world’s second-largest reported proven reserve of graphite. In July, Renascor upgraded the ore reserve estimate of Siviour to 51.5 million tonnes at 7.4 per cent total graphitic carbon (TGC) for 3.8 million tonnes of contained graphite.
This estimate includes a proven reserve of 15.8 million tonnes at 8.4 per cent TGC for 1.3 million tonnes of contained graphite.
Of course, the company has also been spending some time in recent weeks developing and exploring Carnding and its drill-ready, high grade, near-surface gold deposits.
Renascor Managing Director David Christensen said the placement ensures the company can hit some key milestones and make technical progress at the Siviour and Carnding projects.
“Despite the uncertainties created by COVID-19, we are confident in the longer-term demand for lithium-ion battery anode materials such as the purified spherical graphite we will produce from Siviour,” David said.
“Additionally, we are excited to now be able to move ahead with a greater depth and breadth of exploration and development at Carnding,” he said.
Specifically, Renascor said the Siviour work will include sample preparation, metallurgical testing and marketing. Carnding work will include ground sampling, induced polarization (IP) survey work and follow-up drilling.
Shares in Renascor are slipping towards the placement price this morning, currently down 14.29 per cent and worth 1.2 cents each.