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Energizer Resources Inc. (TSX:EGZ,OTCQX:ENZR,FWB:YE5) announced it has closed a non-brokered private placement offering for gross proceeds of $710,000. Insiders subscribed for a total of $50,000 as part of this offering.
Energizer Resources Inc. (TSX:EGZ,OTCQX:ENZR,FWB:YE5) announced it has closed a non-brokered private placement offering for gross proceeds of $710,000. Insiders subscribed for a total of $50,000 as part of this offering.
As quoted in the press release:
The Company has issued 14,200,000 units (the “Units”) at a price of CDN$0.05 per Unit, each Unit being comprised of one (1) common share of the Company and one-half (0.5) of one (1) common share purchase warrant (a “Warrant”), each Warrant entitling the holder thereof to acquire one (1) additional common share of the Company at a price of US$0.07 per share until October 6, 2017.
The net proceeds from the Offering will be used to fund specific value-engineering initiatives, produce purified graphite concentrate samples for battery anode testing from the Molo Project in Madagascar and also for general working capital purposes.
On August 27, 2015 the Company announced it had received confirmation that two independent third parties had successfully manufactured spherical graphite from the Company’s Molo flake graphite concentrate and that initial test results indicated it had met all specifications and quality requirements for battery anode material production.
Testing was performed independently by both a leading Japanese manufacturer of battery anode material and a leading European supplier of spherical graphite for electric vehicles (EVs), both of which Energizer is a under a non-disclosure and confidentially agreement with. The purpose of those tests was to ascertain the potential for Energizer’s Molo deposit to be an alternative and sustainable natural source of high-quality, spherical graphite concentrate for the purpose of supplying battery anode material for the EV market.
Based on these results, both parties confirmed that Energizer qualified to move to the next stage in their respective product analysis, which will include additional bulk-sample testing stages down each of the company’s respective customer supply chains. Energizer is currently in discussions with each party regarding expected timelines and logistics regarding these additional stages, including discussions on potential off-take agreements.
Energizer is expecting additional results on its Molo concentrate from another well-established and reputable independent source that specializes in producing battery-grade spherical graphite specifically for lithium-ion battery applications and looks forward to providing test results when available.
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