Sarytogan Graphite Ltd (ASX:SGA) is set to add $5 million to the war chest for its namesake graphite deposit in Kazakhstan.
The funds will be used for the ongoing development programs at the Sarytogan Graphite Deposit, including a pre-feasibility study (PFS), as well as exploration at Kenesar and general working capital.
Strong interest
SGA is buoyed by the strong interest shown in the placement with firm commitments for 15,151,515 ordinary fully paid shares at 33 cents each from sophisticated investors.
The issue price of 33 cents under the placement represents a 14% discount to the 15-day volume weighted average share price.
This placement has been jointly led by Inyati Capital and RM Corporate Finance with the placement shares and broker options to be issued pursuant to the company’s 15% placement capacity.
The estimated allotment date is April 14, 2023.
Overwhelming interest
“Sarytogan has been overwhelmed by the level of interest in this capital raising from sophisticated and institutional investors,” Sarytogan managing director Sean Gregory said.
“Existing shareholders and new investors will draw confidence in Sarytogan’s strengthened balance sheet that funds our ongoing exploration and development in Kazakhstan including the PFS at the giant and exceptionally high-grade Sarytogan Graphite Deposit.”