Battery goes flat after RCF pulls plug on funding

GRAPHITE developer Battery Minerals has been rocked by the decision of renowned resource sector private equity firm Resource Capital Funds to pull a US$30 million debt and equity package only agreed-to last month.

Battery goes flat after RCF pulls plug on funding Battery goes flat after RCF pulls plug on funding Battery goes flat after RCF pulls plug on funding Battery goes flat after RCF pulls plug on funding Battery goes flat after RCF pulls plug on funding

Battery is confident of finding new financing after RCF reversed its decision to back the project.

According to Battery, RCF made the decision "because the graphite market no longer meets its investment criteria".

The decision means planned graphite production from the company's Montepuez project will be delayed from mid-2019 by "at least three months".

However, the delay could be longer depending on how long it takes Battery to find the funding for Montepuez, with production to follow 12 months after financing is finalised.

Battery needs about US$42.3 million to get the project in Mozambique up and running.

It has cash on hand of A$14.8 million and expects to receive a further $9 million to $14 million in proceeds after a general meeting later this month was called to approve a fund raising currently in train that had been seeking up to $25 million...

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