In its first raise since its 2022 IPO, International Graphite Ltd (ASX:IG6) has raised $3 million via a placement of 24 million new shares to sophisticated and professional investors at an issue price of $0.125 per new share with a view to progress feasibility studies for its Springdale Graphite Project in the Albany Frazer Belt of Western Australia.
In conjunction with the placement, the company has launched a share purchase plan offer that gives eligible shareholders the opportunity to apply for up to $30,000 each in shares, to raise a further total of $1 million.
Together, the placement and the SPP Offer, if fully subscribed, will raise a total of $4 million before costs. The shares offered pursuant to the SPP Offer will be issued at the same price as issued under the placement at $0.125 per share.
The Offer Price of $0.125 per share under the SPP Offer represents a discount of 15.08% to the volume weighted average market price of the company’s shares over the last 14 trading days.
Progressing Springdale Graphite Project
The funds raised under the placement and the SPP offer will be applied to advance feasibility study activities at the Springdale Graphite Project, battery anode testwork feasibility studies and working capital.
International Graphite managing director and CEO Andrew Worland said, “I would like to welcome and thank new shareholders to the company and thank those existing shareholders who have participated in the Placement.
I acknowledge the continued support of our founder and Chairman Phil Hearse for his commitment to the pplacement.
“We have sought to keep this Placement tight with quality holders. The terms of the Placement in our opinion represent excellent value and I encourage shareholders to participate in the SPP.
“This is our first equity market financing since our IPO in April 2022. We have made significant progress to date on our Springdale-Collie mine to market strategy, we have tidied up the capital structure and our work with the communities of Ravensthorpe Shire and Collie are yielding tangible benefits. In addition, we have had excellent support from the Western Australian and Federal Governments.
“We will keep pushing forward and seek to wrap up a feasibility study for the Springdale Graphite Project by year’s end. This will represent a milestone that we expect will initiate additional opportunities for our company.
“The build out of our Collie Micronising Facility is set to commence later this year paving the way for our first production facility in 2025, with associated revenue earnings. “Governments and graphite consumers are responding to the challenge of diversifying their supply chains and focussing on the highest quality jurisdictions, such as Western Australia, as their source of critical minerals. We expect to be at the forefront of the graphite industry development in Australia.”