Mozambique Mining: Syrah Resources raises more capital for Balama project

Syrah Resources will issue common shares reserved for shareholders to raise capital for a graphite project in Cabo Delgado, Mozambique, the company said in a statement.

“The Share Purchase Plan allows eligible shareholders to buy common stock,” under specific conditions, “so that the company can raise 14 million Australian dollars (US$9.8 million),” said a letter signed by Jim Askew, Syrah’s managing director.

The company announced on 4 September an issue of shares reserved for institutional and professional investors to raise 94 million Australian dollars (US$68 million).

The statement released on that occasion said that 30 million dollars would be applied in the Mozambican project of Balama, 25 million in a factory in the United States that will convert the graphite extracted into raw material to be sold to battery manufacturers and 11 million dollars to finance the company’s general costs, including administrative costs.

The remaining 2 million dollars will be used to fund a study to assess the vanadium resources in the Balama mining concession.

Syrah Resources is involved in a graphite extraction project in Balama, Cabo Delgado, northern Mozambique, which since the beginning of exploration and processing in November 2017 has produced more than 160,000 tons of graphite, much of which has already been exported through the port of Nacala, in the province of Nampula. (macauhub)