Graphex Mining Ltd (ASX:GPX) will commence trading on the ASX from 14 June after successfully completing a $7 million initial public offer.
The company has issued 35,000,000 shares at an issue price of $0.20 each in an oversubscribed offer.
Graphex was created by a spin-off of IMX Resources’ (ASX:IXR) Chilalo Graphite Project in Tanzania with a strategy as a pure play graphite company to fast-track development.
A recently completed pre-feasibility study confirmed the technical and financial viability of the Chilalo project, with low capital intensity and attractive returns.
The prefeasibility study forecast that the project would generate a pre-tax net present value of US$200 million over life of mine by producing an average of 69,000 tonnes per annum of graphite concentrate.
The project will have a ten-year mine life and will require a capital of US$75-million to build.
Discusssions are continuing regarding off-take and project finance with two large Chinese companies, China Gold Group Investment Co Ltd and CN Docking Joint Investment and Development Co. Ltd as well as provision of expertise in the development and construction of graphite projects.
In March, the National Environment Management Council of Tanzania issued an environmental certificate for the project, which is a prerequisite for the grant of a mining lease.
The project has a probable ore reserve of 4.7 million tonnes at 11% total graphitic carbon for 516,000 tonnes of contained graphite.
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