Metals of Africa places shares

Metals of Africa Limited has announced an oversubscribed Placement to qualified institutional and sophisticated investors to raise AUD4 million (before costs) through the issue of 72.7 million fully paid ordinary shares in the Company at a price if AUD0.055 per share. 

The issue price for the Placement requests a 15.6% discount to the Company’s 10 day volume weighted average share price. The Placement will be completed in two tranches. Tranche 1 will consist of 53 213 715 shares to raise $2.9 million (before costs) and will be completed shortly utilising the Company’s existing placement capacity under Listing Rules 7.1 and 7.1A. Tranche 2 will consist of 19 513 557 shares to raise $1.1 million (before costs) and will be subject to shareholder approval at a shareholder meeting to be convened in the near future. 

Funds raised through the placement and the Share Price Plan will be applied towards advancing the development of its Montepuez and Balama Central Graphite Projects in the Cabo Delgado Province of Mozambique. Specifically, the funds will be used for Feasibility Study works, Completing bulk sample and metallurgical test work and for general working capital. 

Managing Director of the Company, Cherie Leeden, commented, ‘The capital raising strengthen the Company’s balance sheet, enhance our ability to rapidly develop our world-class Montepuez and Balama Central Graphite Projects and take advantage of the many opportunities currently presenting in the industry, for crtical minerals to the lithium-ion battery supply chain and associated disruptive graphite technologies. Our graphite projects have the potential to be very low cost suppliers to the rapidly expanding lithium-ion battery anode market and our Feasibility Study works are aimed at delivering on that objective. We are in advanced discussions and due diligence with multiple credible end-users. I would like to acknowledge the overwhelming support received in this capital raise by our existing major shareholders and new shareholders, and also welcome CPC to our register.”

Metals of Africa is an ASX listed metals explorations company with lead, zinc and silver operations in Mozambique; copper, rare earth elements and gold in Tanzania as well as lead and zinc operations in Gabon.