(MENAFN - ProactiveInvestors - Australia) Lithex Resources (ASX: LTX) has completed a fully underwritten rights issue raising an additional A1.34 million as part of a broader 1.69 million capital raising to fund graphite exploration in Australia.
The company received 106 applications for 4.3 million shares raising 215,467 of the funds, with the shortfall of 22.47 million to be issued to underwriter Cunningham Peterson Sharbanee Securities.
Mid last month Lithex completed a share placement raising 349,350 of the total funds.
These new funds add to the cash reserves of nearly 3 million the company held at the end of the September quarter.
The company has entered the graphite hunt with plans to acquire 11 graphite tenements in Australia via the acquisition of Far North Minerals, which owns the rights to 100% of the tenements.
The acquisition delivers the company a major new opportunity in a market that has seen prices more than double since 2009 and is facing a strong future.
The graphite tenement package spans 533 square kilometres across four Australian states.
Three tenements make up the Munglinup Project in Western Australia, one comprises the Eyre Point Project in South Australia, five cover various historical showings located in New South Wales, one covers the Furniss East Project in Western Australia, and one covers the Emu Plain Project located in Queensland.
The projects are located in the main known graphite provinces in Australia, including the Munglinup Region of Western Australia and the Eyre Peninsula of South Australia. The tenements are considered highly prospective for occurrences of graphite.
No recent or systematic exploration program has been carried out for the exploration of graphite on any of the acquired tenements.
Lithex has already pinpointed the Munglinup Project as its flagship project, which is located along strike and contiguous with the eastern and southern sides of Graphite Australia's Munglinup Deposit, which is anticipated to be Western Australia's first commercial graphite mine.
There is believed to be the potential for similar mineralisation to the Munglinup Deposit to occur within the Munglinup Project that Lithex is acquiring.