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Energizer Resources Inc. (TSX:EGZ,OTCBB:ENZR,FWB:YE5) announced results of a graphite grade and operating cost sensitivity analysis for its Molo graphite deposit. OpEx costs are expected to decrease with the development of the neighbouring Sakoa Coal Field projects which the Company anticipates will result in the ability to purchase ‘over the fence’ power from the coal-fired power generation facility, as well as OpEx savings due to infrastructure sharing and accelerated port development. The Company also announced the closing of a non-brokered private placement of CAD$2,358,000 by issuing 12,350,000 Common Shares.
As quoted in the press release:
Similarly, the baseline OpEx cost of $523.45 per tonne of graphite is believed to be conservative as it assumes all power for the Project will be supplied by containerized diesel power generation and all-road maintenance for the transport corridor to the port will be assumed 100% by Energizer.
Synergies with the Sakoa Coal Field projects may be realized sooner than initially believed, as there will be coal test shipments to the port of Soalara commencing later this year.
The Company has closed a CAD$2,358,000 non-brokered private placement by issuing 12,350,000 Common Shares.
In connection with the closing, Energizer paid compensation consisting of a cash fee of CAD$86,000 and issued 270,000 broker warrants. Each broker warrant entitles the holder to acquire one Common Share of Energizer at a price of CAD$0.20 for a period of 12 months from the date of issue.
Energizer Resources President & COO Craig Scherba said:
The sensitivity analysis utilized conservative baseline graphite pricing and OpEx costs, yet still illustrates the robust nature of the Project. If the graphite price falls off by 25% and there is a 20% OpEx cost over-run, the project still has very positive IRR and NPV values.
Click here to read the Energizer Resources Inc. (TSX:EGZ,OTCBB:ENZR,FWB:YE5) press release
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