Battery anode and graphene company Talga Resources Ltd., Perth, Australia, (ASX:TLG) has announced it has received firm commitments from a select group of institutional, sophisticated and professional investors to raise gross proceeds of A$10.0 million (“Placement”).
The strongly supported Placement, which received applications well in excess of the amount sought to be raised, reflected significant investor interest as the Company progresses development of its integrated graphite anode facility in Sweden to produce ultra-low emission coated anode for greener lithium-ion batteries.
Commenting on the Placement, Talga Managing Director Mark Thompson said: “This strategically sized placement will enable Talga to execute the next steps in building it’s Li-ion anode production facilities in Europe, while maintaining a tight capital structure to provide shareholders best leverage to project success. The raising also strengthens our position as we enter deeper finance discussions with multiple potential project partners.”
The Company plans to apply the Placement proceeds towards near term project development and corporate activities including:
• Scale-up manufacturing of Talnode®-C customer samples to satisfy larger automotive OEM qualification processes underway;
• Progress the commercial Detailed Feasibility Study to support design, engineering and project finance options for the Vittangi Anode Project;
• Expansion, infill and geotechnical drilling to better define the ultimate tonnage potential of the overall Vittangi graphite project and support mine planning; and
• General working capital.
The Placement will see the issue of 20,000,000 new fully paid ordinary shares in the Company (“Shares”) at an issue price of A$0.50 per Share and will be made pursuant to the Company’s 15% placement capacity under ASX Listing Rule 7.1.
The Placement issue price represents a 7.2% discount to the 20-day volume weighted average price. Settlement of the Placement is expected to occur on Tuesday, 25 August 2020. Shares issued under the Placement will rank equally with existing shares on issue. Canaccord Genuity acted as the Sole Lead Manager to the Placement.
Talga Resources Ltd (ASX:TLG) is a highly integrated developing producer of lithium-ion battery anode products, technologies and industrial graphene additives. The Company’s main focus is building an integrated graphite anode facility in Sweden running on 100% renewable electricity, to produce ultra-low emission coated anode for greener Li-ion batteries. Customer tests confirm the high performance of Talga’s products, and qualification processes with battery manufacturers and automotive OEM’s is underway targeting commercial production in 2023.