Talga cashes up

TALGA Resources has raised around A$8.5 million in an oversubscribed institutional placement.
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Staff reporter

The company will issue around 13.1 million shares at 65c each, a 5.8% discount to Talga's last closing price of 69c.

Canaccord Genuity acted as sole lead manager to the placement, which saw a number of new institutions join the Talga register.

The company was not short of cash, but said it conducted the placement following in-bound interest from several new high-quality investors.

"We welcome our new institutional shareholders to the Talga register in what we see as a maturing vote of confidence by equity markets in the long-term upside for Talga's global scale graphite-graphene material and technologies business," Talga managing director Mark Thompson said.

Talga expects to have $18.5 million cash as of June 30.

The funds will be used for lithium-ion battery graphite and graphene product development, including scale-up of battery anode commercial samples towards product marketing/offtake agreements, graphite resource to reserve conversion and studies, cobalt project development in preparation for a potential spin-off, and working capital.

Talga has three business divisions; one covering its graphite and cobalt resources in Sweden, Talga Advanced Materials, a test process facility in Germany, and Talga Technologies, an R&D facility in the UK.

Talga shares were unchanged at 69c in early trade.