Ann: Capital Raising to Advance Graphite Projects-MTA.AX, page-5

$4.5m Capital Raising to advance World Class Graphite Projects

 $4m Placement to institutional and sophisticated investors
 Share Purchase Plan to Shareholders to raise up to $500,000
 Funds to be used to advance Definitive Feasibility Study works at world class graphite projects in Mozambique Metals of Africa Limited (ASX: MTA) (“the Company”) is pleased to announce an oversubscribed Placement to qualified institutional and sophisticated investors to raise A$4 million (before costs) via the issue of 72.7 million fully paid ordinary Shares in the Company at a price of A$0.055 per share.

The issue price for the Placement represents a 15.6% discount to the Company’s 10 day volume weighted average share price.

The Placement will be completed in two tranches as follows;
 Tranche 1: 53,213715 Shares to raise $2.9 million (before costs) will be completed shortly utilising the company’s existing placement capacity under Listing Rules 7.1 and 7.1A.
 Tranche 2: 19,513,557 Shares to raise $1.1 million (before costs), will be subject to shareholder approval at a shareholder meeting to be convened in the near future (a notice of meeting will be despatched to shareholders shortly).

An indicative timetable for the Placement is included in this ASX announcement.
Share Purchase Plan The Company also intends to offer all existing eligible shareholders in Australia and New Zealand the opportunity to subscribe for up to $15,000 worth of shares at the same Price as the Placement under a Share Purchase Plan (SPP), capped at a maximum total raising of $500,000 (before costs).

Details of the SPP, including an indicative timetable, will be released to the ASX and distributed to eligible shareholders in the near future.
The Company reserves the right to scale back applications under the SPP at its absolute discretion.

Metals of Africa Managing Director, Ms Cherie Leeden ; “The capital raising will strengthen the Company’s balance sheet, enhance our ability to rapidly develop our world-class Montepuez and Balama Central Graphite Projects and take advantage of the many opportunities currently presenting in the industry, for critical minerals to the lithium-ion battery supply chain and associated disruptive graphite technologies.
Our graphite projects have the potential to be very low cost suppliers to the rapidly expanding lithium-ion battery anode market and our Feasibility Study works are aimed at delivering on that objective. We are in advanced discussions and due diligence with multiple credible end-users.

I would like to acknowledge the overwhelming support received in this capital raise by our existing major shareholders and new shareholders, and also welcome CPC to our register.”