Green Critical Minerals raises $2.4m to fund VHD graphite block pilot plant
Green Critical Minerals (ASX: GCM) has received firm commitments from sophisticated and professional investors for a $2.48 million capital raising to fund a pilot plant for the production of very high density (VHD) graphite blocks.
The funds will allow the company to procure the key infrastructure needed to rapidly develop the plant and bring its groundbreaking technology to the revenue-generation stage, a process to be conducted under the supervision of newly appointed head of research and development, Professor Andrew Ruys.
Green Critical entered into a binding heads of agreement earlier this year for the lease of an industrial facility in New South Wales to house the pilot plant, which it plans to have ready for commissioning in the new year.
‘Investor confidence’
The raise, which was oversubscribed, was conducted via the placement of 381.5 million fully paid ordinary shares priced at $0.0065 each, an 18.75% discount to the company’s last closing price of $0.008.
Managing director Clinton Booth said the raising had received strong support.
“It reflects strong investor confidence in Green Critical and the potential of our VHD block technology,” he said.
“The funds raised will be pivotal in advancing the commercialisation of VHD… it positions us well to drive substantial progress towards our growth ambitions and deliver significant value to our shareholders.”
McIntosh project
Mr Booth said the funds would also be used to advance the ongoing development of the McIntosh project in Western Australia.
McIntosh is the country’s fourth-largest graphite resource with 1.1 million tonnes of contained graphite.
It is also one of the most advanced projects of its kind, with over $14m spent to date on drilling and metallurgical test work.
Resource upgrade
Green Critical delivered a 26% upgrade to the McIntosh mineral resource estimate during the September quarter, for a new total of 30.2Mt grading 4.40% total graphitic content.
It also awarded the project’s upstream pre-feasibility engineering study to Wave International, underpinned by a development pathway comprising fine-flake graphite concentrate products, micronised graphite products and battery anode materials.
Mr Booth said the pathway would provide the “ideal opportunity to bring McIntosh into production in the shortest possible timeframe,” providing the company with a mine-to-market supply chain.
The study is due for completion in the first part of the new year.