Elcora Advanced Materials Corp. said Jan. 31 that it plans to raise up to C$5.5 million through a non-brokered private placement offering of 20,370,370 units at a price of 27 cents per unit.

Each unit will comprise of one share and a share purchase warrant that gives the holder the right to purchase one additional Elcora share at an exercise price of 34 cents for two years following the closing of the private placement.

In the event that Elcora's shares trade at or above a price of 60 cents per share for a period of 20 consecutive days, the company may accelerate the warrants' term and give prior notice that the warrants will expire 45 days from the notice date.

Proceeds from the private placement, expected to close on Feb. 2, will be used to increase the output of its Ragedara graphite mine in Sri Lanka in order to meet demand and continue lithium-ion battery testing and development.