29th Oct 2014 13:13
LONDON (Alliance News) - StratMin Global Resources PLC Wednesday said it has raised gross proceeds of GBP800,000 through a placing of 11.4 million new shares at a placing price of 7 pence each, just over a week since it signed a five-year off-take agreement with an independent processor and merchant of graphite.
In a statement, the graphite production and exploration company said it will use the proceeds of the placing for further investment at its Loharano processing plant and for general working capital purposes.
As part of the placing, StratMin Global Resources issued one warrant for every two placing shares subscribed for by investors, each exercisable for one share at 10 pence at any time before November 4, 2015. The company will therefore issue 5.7 million placing warrants, representing the same number of potential shares.
In addition, the company said it has issued 535,714 new shares to an "external third party" in place of GBP37,500 of fees owed to it.
"Following the positive news last week of the signing of the off-take agreement and the identification of further mineralisation at Loharano, raising GBP800,000 in equity allows the company to further invest at the plant in both reliability, product volume and product quality. This is essential to ensure that the company is in the strongest possible position as we resume production and increase sales," Managing Director Manoli Yannaghas said in a statement.
Hume Capital Securities handled the placing.
StratMin shares were down 9.4% at 7.25 pence on Wednesday.
By Samuel Agini; [email protected]; @samuelagini
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