(Ecofin Agency) - ASX-listed Australian miner, Metals of Africa, will raise $AU 4.5 million ($3.3 million) to advance its graphite projects in Mozambique, mainly to finance feasibility studies, bulk sampling and metallurgic tests.

The firm on Friday May 6, 2016, declared that a first part of total of $4 million will be raised through the placement of 72.7 million of shares, at 5.5 cents per share, to sophisticated and institutional investors. Share placement will be done in two sessions, first with the issuing of 53.2 million shares under the firm’s placement capacity. The second part includes the issuing of remaining 19.5 million which is to be submitted to shareholders’ approval.

To mobilize remaining $AU500,000, the company plans to, in addition to share placing, launch a Share Purchase Plan (SPP). According to this plan, eligible shareholders will be able to subscribe, up to $AU15,000 of new shares, still at 5.5 cents per share..

“The capital raising will 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 in the industry,” said Metals of Africa MD Cherie leeden.

Besides the Balama Central and Montepuez, Metals of Africa has the Kroussou project in Gabon, which holds outcrop base metals in various localities, and covers 1496 km2 in the Ngounie province in the central-southern part of the country.

Louis-Nino Kansoun