Mozambi aims to fast track PFS
Published on: | by finfeed
Mozambi Resources looks set to fast track its pre-feasibility study (PFS) after receiving heavily oversubscribed commitments from sophisticated and professional investors.
The company intends to place 135 million new fully paid ordinary shares at an issue price of 3.3 cents per share to raise $4.46 million before associated costs.
The funds will be used to fast track the PFS and continue development activities at Mozambi’s 100% owned Tanzanian Namangale Graphite Project.
Mozambi chairman Stephen Hunt was pleased with the result saying, “We are delighted with the support received from sophisticated and professional investors as a part of our capital raising. The extent of this support has demonstrated confidence in the potential of our graphite project.”
Mr. Hunt also alluded to investors’ willingness to support new energy generation.
“Not only have the participants believed in the Company’s strategy, but also are very supportive of the need to contribute to the evolution of the energy generation sector and the removal of old world energy sources, as the world embraces cleaner, greener technologies,” Mr Hunt said.
“Mozambi is on its way to providing key ingredients of clean battery cell technology going forward.”
Mr Hunt’s role within Mozambi expanded recently. The former Magnis Resources and BHP executive joined the company as Chairman in December 2015 and since then has been working tirelessly to assist with the development of the Namangale Graphite Project.
With recent exciting advancements at Mozambi, including the definition of maiden JORC Resource, Mr Hunt accepted the role as Executive Chairman to oversee corporate functions including management of the PFS and other key corporate objectives such as the assessment and securing of potential off-take arrangements.
The successful capital raising will now fully fund the Company to undertake a detailed PFS and push forward on aggressively developing the Namangale Graphite Project.
The Namangale Project is the largest graphite deposit in Tanzania containing a JORC compliant Inferred Resource of 179Mt @ 5.1% TGC. The project is well located in South Eastern Tanzania being 140km from a deep-water port and 10km from sealed roads. Mineralisation at the three drilled deposits, occurs from surface and remains open in all directions. After the completion of the capital raising the Company is now funded to complete a Pre-Feasibility Study into commencing production of high quality flake graphite targeting the rapidly expanding lithium-ion battery market.