Toronto-based Energizer Resources (TSE:EGZ)(OTCBB:ENZR) closed Friday a $2.03 million financing.
It issued a total of 5.8 million units at a price of 35 US cents each. Each unit was made up of one common share and one half of one share purchase warrant.
Every warrant allows the holder to buy an additional share at a price of 50 cents for a period of two years from closing.
The company said it paid cash fees and issued compensation warrants in connection with the financing.
Energizer Resources is rapidly developing its aptly-named Green Giant graphite project in Madagascar, focused on a projected 100 million tonne Molo deposit- enough to lift the company into the ranks of the top graphite mining projects worldwide.
The miner has recently grabbed the attention of Euro Pacific Canada, with the Toronto-based brokerage adding Energizer to its watch list.
After releasing final assay results earlier this month from the remaining drill holes and trenches at its Molo graphite deposit, Energizer said it expects a NI 43-101 compliant resource estimate this month and a preliminary economic assessment (PEA) by the end of the year.
Highlights from these final results included hole MOLO-12-33, which reported 246m @ 8.19% carbon. Last month, Energizer reported the largest drill hole ever recorded for a graphite project. Hole MOLO-12-01 returned 421.3 meters @ 6.12% carbon.
Graphite is a mineral form of the element Carbon (NYSE:C), and forms in veins inside metamorphic rocks as a soft black material. The industrial mineral has the highest natural strength and stiffness of any material, along with the lightest weight of all reinforcements. It is also an excellent conductor of electricity and heat, as well as strong lubricant.
It has many applications today, ranging from refractories, brake linings and steel-making uses, to lithium-ion batteries and fuel cells. The need for graphite in lithium-ion batteries is projected to grow dramatically, with these batteries found in several electronic devices, including the electric vehicle.
"Although it is still early days, we believe the Molo project has the potential for 80 to 100 million tonnes of graphite at an average grade of 6.5% to 7.5%C based on the correlation between the current geophysics, trench work, drill core data and conductors," noted Euro Pacific analyst, Christina McCarthy, in a recent report.
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