FOLLOWING the upgrade of its Swedish graphite reserves, Talga Resources is hoping to raise $1.47 million in capital to fund the projects.
The money would be raised by a combination of a public and private share placement – both placed at $0.05 per share – and would go towards completing economic assessments to advance the
Nunasvaara and Raitajärvi graphite projects.
Any leftover funds would contribute to advancing Talga’s Swedish iron ore projects, and for general working capital. Talga managing director Mark Thompson said the company had already secured new shareholders.
“We are pleased to secure funds and new shareholders using a robust capital raising structure in what is a particularly challenging equity market environment,” he said.
“After intense efforts by Talga in recent times to minimise costs and spending, the proceeds will allow Talga to immediately recommence its efforts to complete the graphite project economic studies.
“In the first instance, the main focus will be metallurgical work at the Nunasvaara and Raitajärvi graphite projects, leading to ‘production-representative’ samples being ready for distribution and market testing.
“Ultimately the company will be funded through to a position where it will have the project financial and product information necessary to enter into advanced agreements with end users.”
In August, the Raitajärvi project had its inventory upgraded by more than 500 per cent from 54,000t to 307,300t; giving the project a JORC mineral resource of 4.3mt grading 7.1 per cent graphite and an added indicated resource of 3.4mt grading 7.3 per cent of graphite.
“The new resource estimate at Raitajärvi exceeded our expectations and supports Talga’s goal for a deposit potentially capable of producing 25,000 tonnes per annum of coarse flake graphite concentrate over at least 10 years,” Mr Thompson said.
“Being proximal to established bulk commodity transport infrastructure, and to the European market that currently imports 95 per cent of the 200,000t of natural graphite that it consumes each
year, is a major advantage.
“Furthermore, the option to direct rail to European end-users may offer a significant price advantage in bringing our graphite to market sooner, and will assist with what we believe will be attractive operating margins.”
