Talga Group (TLG:ASX) has rattled the tin to raise $22 million in an oversubscribed placement strongly supported sophisticated, professional, and institutional investors.
The battery materials company has received firm commitments for a placement of new fully paid ordinary shares at $1.10 to raise the capital, which takes Talga’s pro forma cash position as of 30 September 2022 to $27 million.
Talga notes that the placement was well supported by a range of leading domestic and European institutions, as well as new and existing shareholders.
the placement was well supported by a range of leading domestic and European institutions, as well as new and existing shareholders
The placement, jointly managed by Morgan Stanley Australia Securities and Euroz Hartleys, and supported by UK placing agent Longspur Capital, will result in the issue of 20 million new shares. This represents about 6.5% of Talga’s existing fully paid ordinary shares on issue immediately prior to the new issue of shares.
Talga reports the placement is scheduled to settle on 13 October 2022 with the new shares to start trading on the ASX the following day.
Proceeds from the placement will be used to fund Talga’s advancement of the Vittangi Anode Project, expanded operation of the Electric Vehicle Anode qualification plant, Niska expansion workstreams and resource drilling, next generation anode development (including Talnode®-Si commercialisation), and for general working capital (including costs of the placement).
Meanwhile, Talga is offering all eligible shareholders in Australia and New Zealand registered on the record date the opportunity to participate in a non-underwritten share purchase plan (SPP) to raise up to an additional $10 million.
Eligible shareholders may apply for up to $30,000 of new shares under the SPP. Under the SPP, Talga shares will be offered at the same issue price as the placement of $1.10 per share.
Any SPP proceeds will be used for Vittangi and Niska project advancement activities and general working capital.
The offer period is anticipated to be open from 14-28 October, subject to Talga’s discretion to amend these dates.
Talga has determined to cap the SPP at a maximum of $10 million. As the SPP is not underwritten, it may raise less than this amount. In the event the SPP is oversubscribed, at this stage the company intends to apply scale back by giving priority to applications received on a ‘first-come, first-served’ basis, however the final decision will be set out in the SPP booklet.
Talga is building a European battery and advanced materials supply chain, to offer products critical to its customers’ innovation and the shift towards a more sustainable world. Vertical integration, including ownership of high-grade Swedish graphite projects, provides security of supply and creates long-lasting value for stakeholders.
Write to Adam Orlando at Mining.com.au
Images: Talga Group Ltd & iStock