Column: Electric dreams turn into a nightmare for battery metals
A sector that was once racing to build new supply has been closing mines and deferring projects as low prices bite into the cost curve.
Australia’s Syrah Resources said on Wednesday it would raise A$98 million ($64.73 million) through a placement and an entitlement offer for funding its Balama graphite operations in Mozambique and its US-based Vidalia project.
Syrah’s largest shareholder and the country’s top pension fund AustralianSuper have agreed to the conversion of a 5-year unsecured convertible note issued in June 2019 and December 2023 into fresh shares in the miner, it said in a statement.
AustralianSuper had committed to subscribing for all shares under the placement and taking up its full pro-rata entitlement in the institutional entitlement offer, the company said.
The placement would be at a fixed price of A$0.55 per new share, which represented a discount of 19.1% to stock’s last closing price on March 12.
The company said it had agreed with AustralianSuper to the conversion of series 1 and 3 notes into new shares at a revised conversion price of A$0.6688 per share.
The company added that AustralianSuper’s shareholding would increase to no more than 31.9% post the completion of funding round, from around 17.8% earlier.
Around 178.2 million new shares would be issued under the placement and entitlement offer, Syrah said.
($1 = 1.5140 Australian dollars)
(By Roshan Thomas; Editing by Sherry Jacob-Phillips and Rashmi Aich)
2 Comments
Wayne G
Lithium miner? Its graphite for a start
Amanda Stutt
Thanks Wayne, we’ve updated the post.
Cheers,
Amanda