Syrah Resources is planning to raise A$110m ($87.89m) through an institutional placement and a pro-rata accelerated non-renounceable entitlement offer to allocate funds needed for developing its Balama graphite project in Mozambique. 

Construction work at the project is currently close to completion, with commissioning activities having started in May.

As part of the placement process, the company is looking to offer around 7.4 million new ordinary shares to investors at A$3.38 a share to raise around A$25m ($19.9m). 

The shares made available under the placement will total around 3% of the company’s undiluted share capital after completion of the entitlement offer. 

Under the entitlement programme, the company will offer one new share for every 10.5 shares held, at A$3.38 per share, to raise around A$85m ($67.9m). 

"The company is looking to offer around 7.4 million new ordinary shares to investors at A$3.38 a share to raise around A$25m."

Proceeds from the capital raising will be used to meet working capital requirements and costs relating to the ramp-up of production of the Balama project. 

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In addition, proceeds will be directed towards project development and other expenditure in connection with the commercial acceleration of the company’s battery anode material (BAM) strategy. 

The company indicated that debt funding is an expensive option and restrictions imposed on the use of funds and other requirements proposed by debt financiers are expected to restrict spending on strategic options.

Earlier this month, the company signed an agreement to sell graphite from the Balama operation to Chinese battery anode manufacturer Shenzhen BTR New Energy Materials’ (BTR) subsidiary Jixi BTR Graphite Industrial.

The project has a combined proven and probable reserves of 81.4 metric tonnes (Mt), with contained graphite of 13.2Mt.