Tirupati Graphite PLC (LSE:TGR, OTCQX:TGRHF) said it has raised £5mln by way of an institutional and private placing of new shares at a price of 35p each.
The price represents a discount of 18.57% to the company's closing mid-market price of 41.5p on 2 December 2022.
The new funds will be used to help Tirupati meet all its obligations to complete the acquisition of Suni Resources SA from Battery Metals Ltd, amounting to around £3.5mln, and provides working capital for the company to progress its graphite production activities.
“We are delighted to have received institutional and other investor support for the fundraise, which provides us with the financial resources to meet the obligations towards the completion of the Suni transaction,” said Shishir Poddar, chief executive of Tirupati Graphite in a statement.
The company has also made further variations to the terms under which it is buying Suni Resources.
Under the new arrangements Tirupati will pay A$2.5mln in capital gains tax in return for a reduction in the value of consideration shares to be issued to Battery Minerals. Tirupati will also retain the right to the VAT refundable to Suni by tax authorities expected to amount to approximately A$1.5mln.
The Balama Central and Montepeuz projects which are held by Suni Resources, are both fully licensed for construction to 150,000 tonnes per year flake graphite production capacity. At Montepuez construction of the first 50,000 tonnes per year module has been initiated by Battery with plant development and tailing pond construction completed and base camp residential facilities for 100 persons built.