Syrah Resources (ASX: SYR) has completed a fully underwritten placement to Australian and international institutional and sophisticated investors raising A$16 million, with the placement closing significantly oversubscribed.
The funds raised will be used primarily for drilling as well as Scoping and Feasibility Studies at the company's wholly owned Balama Graphite Project in northern Mozambique.
Syrah issued around 7.15 million shares at $2.25 each to raise the money.
Balama is proving to be an exceptional deposit by global standards after recently returning very high grade zones averaging greater than 20% total graphitic carbon and 0.33% vanadium from within 5 metres of surface, with widths from 58 to 110 metres.
The highest grades reported were 30.3% total graphitic carbon and 0.88% vanadium over 2 metres.
These results rank Balama among the highest grades recorded globally when compared to the current highest grade flake graphite deposit in the world, Focus Graphite's (TSXV: FMS, OTCQX: FCSMF, FSE: FKC) Lac Knife deposit in Canada.
Lac Knife hosts a Measured, Indicated and Inferred resource of 8.1 million tonnes at 16.1% carbon.
The graphite flakes also appear to be predominately coarse to very coarse in size, which is extremely promising as coarse flake graphite generally attracts higher sales prices.
Initial metallurgical testwork has produced an upgraded graphitic carbon concentrate of 97%.
Syrah is working towards the definition of an initial JORC resource in November 2012.
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