Talga has announced the launch of a fully underwritten institutional placement to raise USD$18.8 Million (AUD$25 million) before costs and a non-underwritten Share Purchase Plan to eligible shareholders to raise up to USD$7.5 Million (AUD$10 million).
Talga will use the proceeds to fund the Electric Vehicle Anode (EVA) pilot plant as part of the development of the Vittangi Anode Project located in northern Sweden.
The USD$18.8 Million gross proceeds from the Placement will be applied towards:
â€¢ building the Electric Vehicle Anode (EVA) pilot plant (USD$16.5 Million); and
â€¢ general working capital including transaction costs and supporting the ongoing project
development (USD$2.3 Million).
Any Share Purchase Plan proceeds will be used for additional working capital and to support the future development of Vittangi.
Talga Managing Director, Mark Thompson commented: The proceeds from the raising will be used towards constructing and operating our EVA pilot plant in 2021 as a key step to finalize the EV customer validation processes currently underway. The EV revolution is here today and Talga is ideally positioned to build a new low-cost, large-scale graphite anode supply chain outside of Asia to serve the European and North American markets. Our recently announced Niska scoping study confirms the scalability of our project and supports a 450% increase to our current European anode production plans, taking our planned total anode production to meet approximately 100GWh of annual Li-ion battery capacity in 2025-26. The unique properties of our Vittangi graphite deposit result in materially higher anode yields. This, in combination with access to low-cost 100% renewable power and proximity to our end customers, means that Talga will be able to deliver a graphite anode with a fraction of the emissions footprint compared to incumbent synthetic products.