Talga expands Prospectus Offer to $9M, banks $18.5M overall since end of financial year

Talga Group Ltd (ASX:TLG) is set to raise up to A$9 million through a Prospectus Offer announced earlier this month, which has gone well beyond its initial target of A$5 million through strong shareholder support.

Initially opening on August 9, the Prospectus Offer allowed eligible shareholders to apply for up to $30,000 new shares priced at A$0.38.

Having closed the offer on August 23, Talga said that in light of shareholder support – and to reduce dilution of returning shareholders – the board agreed to increase the offer size to A$9 million and to scale back applications going beyond this amount.

The result marks Talga’s second successful round of capital raising since the end of the financial year – which has banked them A$18.5 million altogether – following on from a recent institutional placement which raised A$9.5 million.

Overall, the company’s cash balance as of 30 June 2024 was sitting at A$14.1 million.

Proceeds from both capital raising efforts will be plugged into Talga’s Vittangi Anode Project development (with this being at the pre-FID stage), progression of expansion studies, progression of the SQM lithium JV and general working capital.

Managing Director Mark Thompson said he was pleased with the successful raisings.

“We thank all of our shareholders who continue to demonstrate their strong support for our joint mission,” he said.

“The proceeds from the oversubscribed Prospectus Offer, together with the proceeds from the placement, will bolster our Company’s ability to deliver key milestones.”

At 11:48 AEST, Talga shares were trading at 42 cents: a fall of 8.69% since the market opened.