Battery Minerals secures funds for graphite project in Montepuez

Australian company Battery Minerals has announced there are seven groups interested in providing the funds needed to reach the US$51.2 million needed for its Mozambican graphite exploration project, the Australian press reported.

The company’s shares fell sharply when Resource Capital Funds cancelled a deal worth US$30 million in equity and outstanding debt, forcing Battery Minerals to postpone the start of the project, according to the West Australian newspaper.

Managing Director David Flanagan said on Monday at mining forum “Diggers and Dealers” there are entities interested in ensuring the necessary funding for the development of the project, and that the company expects to start graphite exports twelve months after raising funds.

Last week at the Africa Downunder conference, Flanagan said that Battery Minerals was analysing ways to explore the vanadium at its mining assets in Mozambique, worth an estimated US$10 billion.

In March 2012, Battery Minerals secured a mining license to develop the graphite project at deposits in Montepuez, in the province of Cabo Delgado.

The mining license will allow the company to start phases 1 and 2 of the project, which outlines production of 100,000 tons of zinc/lead and copper graphite concentrate per year.

Battery Minerals is listed on the Australian Stock Exchange. The company produces concentrated graphite flakes and has two world-class graphite deposits in Montepuez and Balama Central.

The company has already signed four binding contracts to supply up to 41,000 tons of graphite concentrate per year, which account for around 80% of the Montepuez deposit’s annual production forecast. (source: Macauhub)

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