Bass Metals Limited (ASX:BSM) has successfully raised circa $3.8 million via a placement and an accelerated entitlement offer at an issue price of $0.011 per share.
This completes the first stage of the company’s $6 million equity raising, revealed earlier this week.
Bass has raised circa $3 million from the placement to institutional and sophisticated investors and circa $0.8 million from the accelerated one-for-six non-renounceable entitlement offer.
The funds raised will be used towards the final payment for the acquisition of the Graphmada Mine in Madagascar, its refurbishment expenditure and exploration of graphite and lithium prospects.
Bass is continuing to make progress towards refurbishing the Graphmada mine with the aim of re-commissioning this calendar year as a profitable producer of high purity graphite concentrates.
The Graphmada mine has mining permits for 40 years in place, containing four premium quality, large flake, graphite deposits.
The producing mine is currently being upgraded to 6000 tonnes per annum with improved final graphite concentrate grades, in order to grow cash margins.
Bass is planning to expand production to greater than 20,000 tonnes per annum of graphite concentrate by late 2018.