Sign up Australia
Proactive Investors - Run By Investors For Investors

Battery Minerals attracts $20 million to fast-track graphite project in Mozambique

Oversubscribed placement ensures Battery Minerals continues to be on track for commissioning in Q1 CY2019.
australian dollars
The company commissioned the crushing circuit last week

Battery Minerals Ltd (ASX:BAT) has received firm commitments to raise $20 million from a share placement to progress its strategy to develop the Montepuez Graphite Project in Mozambique.

The placement was at 6 cents per share and was over-subscribed amid strong demand from existing shareholders and institutional investors in Australia and overseas.

Battery Minerals will use the proceeds to continue the construction of the Montepuez Graphite Project, where commissioning is set for the March quarter of next year.

Stage One at Montepuez will produce 45,000 to 50,000 tonnes a year of graphite concentrate, which will generate about US$25 million of net operating cashflow a year, based on current prices.

Construction at Montepuez is well-advanced

Battery Minerals managing director David Flanagan said the highly successful raising marked another step towards commencing production and cashflow from the Montepuez Graphite Project.

Flanagan added: “We were overwhelmed with offers from investors who were attracted to the short lead time to production and cashflow.

“Construction at Montepuez is already well-advanced. We have ordered our long lead items and these will be delivered over coming months. We commissioned our crushing circuit last week.”

Binding offtake agreements signed

Battery Minerals recently signed four binding offtake agreements for up to 41,000 tonnes per annum of graphite concentrate, representing over 80% of Montepuez’s forecast annual production.

The Mozambican government has already granted the company a mining licence for the project and has accepted the company’s EIA (environmental impact assessment).

Share purchase plan

In addition to the placement, Battery Minerals will undertake a securities purchase plan (SPP) to existing shareholders.

This will allow each shareholder to apply for up to $15,000 of shares by 22 June 2018 at a price of 6 cents per share.

View full BAT profile View Profile

Battery Minerals Ltd Timeline

November 03 2016

Related Articles

reverse circulation drill rig
August 10 2018
The near-term goal at Garden Gully is to deliver a maiden JORC resource.
Picture of area surrounding Paradox Lithium Project
May 07 2018
Cloud, Cane and LC South will be part of Anson's Paradox project with the claims being close to oil wells with historically recorded lithium values.
September 20 2018
Kodal Minerals is moving rapidly to work up the Bougouni project in Mali

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use