The A$6.8 million raising at 13.5c was managed by Argonaut Securities, and was priced at a 13% discount to BlackEarth's last trading price.

 

The placement, to a mix of domestic and international institutional and sophisticated investors, boosts BlackEarth's treasury to $9.3 million.

 

The cash will aid the company in completing the DFS for its Maniry project in Madagascar and commence its front-end engineering and design studies and purchase some long-lead items.

 

BlackEarth will also fund new drilling and exploration programs at its high-grade Razafy Northwest area, which could increase overall resources and improve the project's economics.

 

Managing director Tom Revy said the company was "delighted with the exceptional level of investor interest" in its plans.

 

The DFS is expected to be in June, with project financing to commence soon, with the aim of securing a debt funding agreement before the end of the end of the year.

 

It hopes to commission its stage one 500,000 tonne per annum plant in 2023.

 

Last year's scoping study update suggested the initial stage would cost US$38 million, but has a net present value of $230 million and an internal rate of return of 86%.

 

Payback for stage one was estimated at 1.2 years.

 

Maniry's resources were increased 32% to 841,000t of contained graphite in November, with the maiden resource for the Razafy Northwest area, which remains open.

 

Stage two, which would double production to 1Mtpa from year four, will require an additional $26 million.

 

Additional funds from today's placement will be allocated towards the downstream processing development in India with its joint venture partner, Metachem, which is also expected to commence production in 2023.

 

BlackEarth shares eased 10% in early trade to A14c, capitalising it at $35 million. 

 

The stock has traded between 5c and 28c over the past year.