Leading Edge Materials Corp (CVE:LEM, OTCQB:LEMIF) told investors it had closed its previously announced private placing, bringing in around $1.68 million gross, which it will use to advance its Woxna graphite project in Sweden.
The materials group issued over 6.02 mln units at $0.28 each for gross proceeds of approximately $1,687,799.40.
"We are pleased to have met our objectives for this financing given the current market conditions," said Blair Way, president and CEO of the firm.
As reported earlier this month, the group amended the financing, such that the units were sold at $0.28 each.
"The company intends to use the net proceeds from the offering to continue to advance the Woxna graphite production facility to meet the demands of the lithium-ion battery market, to further exploration activities on other critical materials for the energy storage market and for general working capital purposes," said Way.
There's been plenty of newsflow from the firm about the Woxna mine this year.
Lying 160 miles from Stockholm, the project was on care and maintenance when Leading Edge bought it back in 2011.
Operations restarted in 2015 using freshly mined material but falling prices for flake graphite and a downturn in the sector meant it was mothballed but now LEM plans to press go again on the project and has been advancing it with that in mind.
Latest progress saw the publication of positive spheronization test results from graphite from the mine.
The company is undertaking research and development (R&D) to support the design and installation of a battery graphite demonstration plant at the site.
Spheronization (also known as spheroidisation) is a milling and shaping process to reduce the size of graphite flakes while shaping the flakes in an elongate spheroid.
The aim is to optimize the particle surface area to achieve the highest performance in the anode (battery material).
Leading Edge Materials shares are up 3.70% in Toronto at $0.28.
Contact Giles Gwinnett at [email protected]
Follow Giles on Twitter @Gile74