- Battery metal explorer Talga Resources (TLG) has frozen its shares until the end of the week as it prepares to raise some fresh capital
- The details of the capital raise will be revealed on Friday, August 21
- Talga recently told shareholders it would fast-track the development of its Vittangi Anode Project in Sweden, with commercial production planned for 2023
- As such, given the company has less than a year left of cash in the bank at current spending levels, the upcoming capital raise was probably expected
- Shares in Talga last traded for 60 cents each on Friday afternoon
Battery metal explorer Talga Resources (TLG) has frozen its shares until the end of the week as it prepares to raise some fresh capital.
Exactly how much the company plans to raise and what the new funds will be used for is yet to be revealed, but Talga’s trading halt is slated to end on Friday, August 21.
Talga recently revealed some “outstanding” feasibility study details for its Vittangi Anode Project in northern Sweden. Talga said it is planning to fast-track the project to a 19,000-tonne-per-anum commercial operation by combining two initial stages of development into a single commercial stage.
Essentially, this means the company is planning to get the project up to commercial production in 2023, with a definitive feasibility study planned for the first quarter of 2021.
Of course, taking a look at the company’s financial position, Talga is yet to start making money from product sales. Over the June quarter, the company went cashflow-negative by around $1.5 million. For the full 2020 financial year, this figure was $12.5 million.
With just over $5 million in the bank at the end of June, this means Talga had less than a year of funds remaining at current spending levels.
Thus, the upcoming capital raise may not be too surprising to investors as Talga takes on the potential extra costs associated with fast-tracking the Vittangi project.
With a total resource of 16.9 million tonnes at 25.6 per cent graphite, Talga claims the Nunasvaara deposit at the Vittangi project has the higher-grade resource in the world for natural graphite.
On top of its Swedish graphite deposits, Talga also owns some copper-cobalt-gold projects and two iron ore projects in the Scandinavian nation.
Shares in Talga last traded for 60 cents each on Friday afternoon. The company has a $147 million market cap.