Funds To Accelerate Vittangi Anode Project Development
Battery anode company Talga Group Ltd (ASX:TLG) has launched a fully underwritten institutional placement of new fully paid ordinary shares to raise A$25 million and a non-underwritten Share Purchase Plan (SPP) to eligible shareholders to raise up to A$10 million.
The A$25 million gross proceeds from the Placement will be applied towards:
- Building an Electric Vehicle Anode (EVA) pilot plant (A$22million); and
- General working capital including transaction costs and supporting the ongoing project development (A$3 million).
Managing Director, Mark Thompson, said any SPP proceeds will be used for additional working capital and to support the future development of Vittangi.
“The proceeds from the raising will be used towards constructing and operating our EVA pilot plant in 2021 as a key step to finalise the EV customer validation processes currently underway,” Mr Thompson said.
“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.”
