International Graphite successfully raises $3m to advance Springdale graphite project
International Graphite (ASX: IG6) has completed a $3 million capital raising to advance feasibility study activities and battery anode test work at the Springdale graphite project near Collie in Western Australia.
The company received firm commitments for the placement of 24 million new shares from sophisticated and professional investors at an issue price of $0.125 per new share to raise the funds.
It also launched a share purchase plan giving eligible shareholders the opportunity to apply for up to $30,000 each in shares to raise a further $1m.
The shares will be issued at the same price as the placement and represent a discount of 15.08% to the volume weighted average market price of International Graphite’s shares over the last two weeks.
Pleasing response
Managing director Andrew Worland was pleased at the response to the raising.
“I would like to thank new shareholders to the company and existing shareholders who have participated in the placement,” he said.
“I also acknowledge the continued support of our founder and chair Phil Hearse for his commitment.”
“We have sought to keep this placement tight with quality holders [and] we believe the terms represent excellent value.”
The capital raising marks International Graphite’s first equity market financing since its initial public offering in April 2022.
“We have made significant progress to date on our Springdale mine-to-market strategy,” Mr Worland said.
“We have tidied up the capital structure and our work with the communities of Ravensthorpe Shire and Collie are yielding tangible benefits.”
State government funding
The company has received “excellent support” from the WA state government, including a grant of $6.5m this month to finance Australia’s first downstream graphite processing plant.
The funding will be used to establish a 4000-tonnes per annum commercial-scale micronising operation and progress battery anode feasibility work for concentrate feedstock from Springdale.
The award builds on two years of establishment work and brings the company’s total amount of state funding to date to $8.5m.
The Springdale plant will be Australia’s first purpose-built graphite processing facility and is expected to significantly increase the nation’s sovereign supply of critical battery minerals.