SRG Graphite Inc. plans to raise up to C$10 million in an underwritten public offering and a private placement.
Funds will be used to advance the Lola graphite project in Guinea, including regional exploration, infill resource drilling and completing a feasibility study. Funds will also be used for exploration at the Gogota cobalt-nickel-scandium project in eastern Guinea and for general working capital purposes.
SRG said May 2 that it entered into an underwriting agreement for 5,334,000 units at C$1.50 each for proceeds of C$8 million.
Each unit will comprise 1 common share and a purchase warrant exercisable for 12 months for an additional share at C$2.30 per share.
Meanwhile, the company intends to complete a nonbrokered private placement with Coris Capital SA of up to 1,333,333 private placement units on the same terms as the public offering.
The offering and private placement are expected to close May 18.
