- Natural graphite developer Syrah Resources (SYR) has successfully completed an institutional placement and raised $56 million
- All up, 62.2 million new fully paid ordinary shares were issued professional and sophisticated investors at 90 cents
- This price represents an 11.2 per cent discount to the five-day volume-weighted average price
- Syrah will use the funds to progress its natural graphite Active Anode Material facility in Louisiana and provide additional liquidity at the Balama Graphite Project in Mozambique
- Following completion of the placement, eligible shareholders will be able to take part in a share purchase plan to raise an additional $12 million
- Shareholders will be able to subscribe for up to $30,000 worth of shares, priced the same as the placement of 90 cents
- Syrah is down 9.36 per cent on the market and shares are trading at 92 cents
Syrah Resources (SYR) has successfully completed an institutional placement and raised $56 million.
The natural graphite developer entered a trading halt on Wednesday but did not disclose how much it would be raising or what the funds will go towards.
All up, 62.2 million new fully paid ordinary shares were issued professional and sophisticated investors at 90 cents.
This price represents an 11.3 per cent to Syrah’s closing price of $1.01 on December 8, and an 11.2 per cent discount to the five-day volume-weighted average price.
The placement was oversubscribed and well supported by new and existing investors.
Syrah will use the funds to progress its natural graphite Active Anode Material facility in Louisiana towards a final investment decision during 2H 2020.
The money will also be used to provide additional liquidity to manage a restart decision at the Balama Graphite Project in Mozambique.
“The company is now in a robust financial position to progress the Vidalia Battery Anode Material Project towards a final investment decision, with additional liquidity to manage a Balama restart decision in an orderly manner in line with market conditions,” CEO and Managing Director Shaun Verner said.
“The lithium ion battery sector continues to advance at a rapid rate and creates substantial opportunity for Syrah – with delivery of our objectives for Vidalia and Balama we will be well placed to maximise this opportunity for the benefit of our shareholders,” he added.
Following completion of the placement, Syrah will offer eligible shareholders the opportunity to participate in a share purchase plan to raise an additional $12 million.
Shareholders will be able to subscribe for up to $30,000 worth of shares, priced the same as the placement at 90 cents.
The plan is expected to open on December 21.
Syrah is down 9.36 per cent on the market and shares are trading at 92 cents at 11:42 am AEDT.