GreenRoc Strategic Materials PLC (AIM:GROC) said it has raised £735,000 before costs to fund work around its Amitsoq graphite deposit in Greenland.
"This fundraise allows us to move on with both the Amitsoq mine and our plans for the graphite anode materials plant," said CEO Stefan Bernstein.
A placing with institutional investors raised £500,000, with another £165,000 from existing shareholders, £50,000 from main shareholder Alba Mineral Resources PLC (AIM:ALBA) and £17,500 from five directors, all at a price of 1.3p per share, a discount of 31.57% to the last closing price.
For every two new shares issued in the fundraise, investors will also receive one warrant with an exercise price of 2p that will expire in two years.
GreenRoc said the new cash will provide general working capital and be used for several pressing tasks, including applying for grant funding to finance part of the forward work programme at Amitsoq, and paying fees for the recently submitted application for an exploitation licence and for the testing of non-fluoric acid purification techniques for graphite anode material.
Bernstein said the company will also will also engage with a consultant aims to conduct life-cycle analysis of CO2 emissions associated with its plans for a graphite anode material plant.
"We will now work to exploit the various opportunities for public financing of parts of the work programme, building on the fact that the Amitsoq mine and the graphite anode materials plant have been granted formal 'Project' status by the intergovernmental Mineral Security Partnership and we have applied to become a Strategic Project under the EU's Critical Raw Materials Act."
He added: "We will strive to establish a strong financial foundation for GreenRoc to develop its capacity to produce graphite anode material for the European battery industry.
"I would like to thank the investors supporting this raise - in what remain challenging capital markets, we set out to raise a minimum of £500,000 and achieved a near 50% oversubscription, which is a strong endorsement of the huge potential upside associated with GreenRoc."