AUSTRALIAN FIRM RAISES 7.0 MLN USD FOR GRAPHITE PROJECTS IN MOZAMBIQUE

The Australian company, Metals of Africa, says it has raised just under seven million US dollars through a share placement to fund the development of its graphite projects in the northern Mozambican province of Cabo Delgado.

The company said in a statement Monday that the shares were priced at an 8.2 per cent discount on the last closing share price. The funds will be used, among other things, for a feasibility study, early earthworks and mining camp construction, and pilot plant test work.

According to the company’s managing director, Cherie Leeden, “this was a very heavily oversubscribed raising, which was strongly supported by existing shareholders”.

“The high level of demand for the placement is a big tick for the work we’ve done to date at our graphite assets in Mozambique,” she added.

“The potential of the battery minerals industry is enormous and graphite is a key ingredient in all lithium-ion batteries, arguably the most important battery of our time. We are advancing high-quality projects in the best graphite province in the world.”

Leeden also announced that the feasibility study at the Montepuez project would be completed in December. The Montepuez project contains an estimated 6.3 million tonnes of graphite and 163,000 tonnes of vanadium oxide. In addition, the nearby Balama project holds an estimated 1.7 million tonnes of graphite and 34,000 tonnes of vanadium oxide.

Graphite is a form of carbon which is highly valued because of its properties as a conductor of electricity. It is used in batteries and fuel cells and is the basis for the “miracle material” graphene, which is the strongest material ever measured, with vast potential for use in the electronics industries.

Source: NAM NEWS NETWORK.