The placement of 20.5 million shares will be made at 60c, an 11.7% discount to Talga’s Wednesday closing price before entering a trading halt.

Canaccord Genuity was the lead manager and bookrunner.

As well as institutions, the placement was also supported by major shareholders, including Mark Creasy’s Yandal Investments and the Smedvig Family Office.

The proceeds of the placement will be put towards Talga’s commercial, processing, product development and mineral development projects in Europe.

Talga managing director Mark Thompson said the company had strengthened its register.

“Amongst other things, the funds will specifically support Talga’s continuing production process development and facility scale-up in Germany, expansion of the graphene product development team and facilities in the UK and completion of a prefeasibility study for the Vittangi project,” he said.

“Importantly, the cashflow budget will now align with a significant potential cash inflow at or before December 2018 when around $24 million worth of listed and unlisted options are due to expire.”

Talga already had $6.2 million in cash at the end of March.

The company last week announced it had uncovered high-grade cobalt in historical core from the Ahmavuoma project in Sweden, 30km north-east of Vittangi.

Results included 52m at 0.59% copper, 0.24% cobalt and 0.17 grams per tonne gold from 60mm including 21m at 1.12% copper, 0.38% cobalt and 0.42gpt gold.

The company is planning follow-up work.

 

Shares in Talga were down by 5.9% to 64c. The stock has more than doubled this year, peaking at 87c in April.