- Magnis Energy Technologies (MNS) is tapping investors for $1.5 million through a share placement
- A total of 20 million shares will be issued to sophisticated, professional and institutional investors at a price of 7.5 cents each
- Magnis will use the money to develop its Nachu Graphite Project in Tanzania and its proposed manufacturing facilities in New York and Townsville
- Company shares are up a slight 2.6 per cent on the market and trading for eight cents each
Magnis Energy Technologies (MNS) has received firm commitments from investors for a $1.5 million placement.
A total of 20 million shares will be issued to sophisticated, professional and institutional investors at a price of 7.5 cents per share.
Magnis will use the money to further develop its projects, such as the Nachu Graphite Project and the proposed manufacturing facilities in New York and Townsville.
"We are encouraged by the strong interest shown in our capital raising which was done at a small discount to the previous closing price," Magnis Chairman Frank Poullas said.
"Our facility with Negma still has close to $5 million remaining and, along with today's placement, has improved the company's financial position," he added.
Magnis' Nachu Graphite Project is located in southeast Tanzania and it has a global mineral resource estimate of 174 million tonnes at an estimated grade of 5.4 per cent graphitic carbon.
According to Magnis, this project represents one of the largest mineral resources of large flake graphite in the world.
In mid-December 2019, Magnis executed a binding engineering, procurement and construction contract with Metallurgical Corporation of China.
This contract provided a turn-key solution for a 240,000 tonne per annum graphite production facility at the Nachu Project.
Further, this contract is an important prerequisite in the application for project financing support from the China Export Credit Agency.
Magnis is up a slight 2.6 per cent on the market today and shares are trading for 8 cents each at 11:24 am AEST.