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Metals of Africa raising $5M for graphite and zinc exploration

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Metals of Africa (ASX: MTA) has received strong investor support for its graphite and zinc exploration programs, and will raise $5.063 million through a placement and rights issue.

The placement will be made via issue of 12.2 million shares at $0.15 per share to professional and sophisticated investors, and a fully underwritten rights issue of 21.55 million shares, also at $0.15, on a 1 for 5 basis.
 
Funds raised will be utilised toward upcoming drilling programs at the Rio Mazoe base metal and Montepuez graphite projects in Mozambique, and for general working capital.


Rio Mazoe

At Rio Mazoe, the Cassidy Shea, Rhodonite Hill and Downeaster targets are some of the highest ranked prospects of a total of 39 prospects.

Already identified at Cassidy Shea are multiple zones of outcropping zinc and copper mineralisation, with recent analysis of rock chip samples returning up to 11.9% copper and 4.37% zinc.


Montepuez


MTA has already identified numerous occurrences of surface graphite outcropping at the wholly-owned Montepuez Project.

Adding potential, two of the licences that make up the Montepuez Graphite Project are located along strike from graphite heavy weights Syrah Resources (ASX:SYR) and Triton Minerals' (ASX:TON) projects, respectively.

Syrah Resources' Balama Graphite Project has the world’s largest graphite resource, of 1.15 billion tonnes at 10.2% Total Graphitic Carbon and 0.23% vanadium.

Much of the Montepuez project occurs within the same regional geological setting as these large graphite deposits.

Hence the early promise from finding outcropping graphitic geology within Metals of Africa's ground is very encouraging.

Recent laboratory results confirmed MTA has high grade, large flake graphite mineralisation at its Montepuez Graphite Project, which now comprises three licenses: Montepuez East, Central and North.

The results are from rock chips and are present in outcrop at surface mineralisation, and show up to 16.5% total graphitic carbon and up to 0.31% vanadium.

Drilling at Montepuez will commence in October.


Increased graphite exposure

Last month, MTA increased its holdings near Syrah and Tritons projects in the Cabo Delgado district, executing binding agreement to acquire the Balama Central Project.

The Balama Central Project has not been subject to any previous systematic or on the ground exploration, and has a main road passing through the middle of the license.

Final due diligence will take up to six weeks, then exploration will commence immediately.


Analysis

This placement again confirms investor appetite for graphite exploration in Mozambique. In July, MTA completed a placement issuing 7,604,000 shares at $0.125 per share to raise $950,000.

However, MTA's Rio Mazoe project should not be forgotten as the potential for finding a Broken Hill Type deposit is compelling.

The company is now well funded to complete comprehensive drilling programs at Montepuez and its high impact Rio Mazoe base metals project.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

Quick facts: Metals of Africa Ltd

Price: 0.007 AUD

ASX:BAT
Market: ASX
Market Cap: $9.23 m
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