BlackEarth Minerals NL (ASX:BEM) has completed a successful bookbuild to raise $6.8 million.
The company secured firm commitments from existing and new domestic and international institutional and sophisticated investors to subscribe for roughly 50.7 million new fully paid ordinary shares in what was a heavily oversubscribed placement.
BEM will issue 50,650,955 new shares at $0.135 apiece — a 12.9% discount to the last close on January 19, 2022, of $0.155 per share.
Securities are expected to be issued on or about January 31, 2022.
“The Board of BEM is delighted with the exceptional level of investor interest in this fundraising event, reflective of the strong current thematic in the graphite sector,” BlackEarth managing director Tom Revy said.
“Following recent releases on the progress of the Maniry Project together with the significantly enhanced financials, we are seeing substantial interest in our project by both local and overseas institutional investors, who participated in the raising, including those focused on ESG.
“Management remains excited with the development progress of both its Maniry Graphite Project and its Indian JV expandable graphite plans, and the key milestones that will be reached in 2022.”
The funds will go to good use
Money raised, along with BEM’s existing cash balance will be used to achieve several important milestones, not least the completion of its definitive feasibility study (DFS). Funds will be used to:
- Complete the DFS for the Maniry Graphite Project;
- Continue extensive drilling and exploration program at the Maniry Project’s high-grade Razafy NW area to potentially further increase the project’s economics;
- Add to BEM’s current resource inventory both at Razafy and Razafy NW;
- Develop BEM’s downstream expandable graphite project plans in India; and
- Front end engineering and design (FEED) and the purchasing of long-lead items post the completion of the Maniry DFS.