Invert Graphite Launches A$3.5M Share Offer Amid Tanzanian Project Push
Invert Graphite has lodged a prospectus to raise up to A$3.5 million through a share offer priced at A$0.03 each, while advancing its acquisition of a Tanzanian critical minerals project. The company reported no exploration activity this quarter and incurred operating losses, reflecting a transitional phase ahead of relisting.
- Prospectus lodged to raise A$3.3 million with potential oversubscription of A$200,000
- ASX granted waivers allowing share issuance below standard price thresholds
- No exploration or production activities during the March quarter
- Operating cash outflows of A$553,000 reduced cash reserves to A$1.49 million
- Progressing acquisition of Tanzanian Critical Minerals Project with related costs incurred
Capital Raise to Fuel Strategic Acquisition
Invert Graphite Limited (ASX: IVG) has taken a decisive step towards revitalising its operations by lodging a prospectus to raise up to A$3.5 million through the issuance of 110 million shares at A$0.03 each. This capital raise, supplemented by an option to accept oversubscriptions, aims to underpin the company’s acquisition of the Tanzanian Critical Minerals Project, a move that could reposition Invert Graphite within the critical minerals sector.
The offer follows a series of ASX waivers permitting the company to issue shares and convertible securities at prices below the usual A$0.20 threshold, reflecting regulatory flexibility to support the company’s relisting and capital raising efforts. Invert Graphite is also seeking further extensions to these waivers, indicating ongoing negotiations with the ASX to facilitate its strategic plans.
Operational Pause Reflects Transitional Phase
The March 2025 quarter saw no exploration, mining production, or development activities, underscoring a period of transition as the company focuses on acquisition and relisting preparations. Acquisition and relisting costs, including legal and technical expenses related to the Tanzanian project, contributed to operating cash outflows of A$553,000, reducing cash reserves from A$2.04 million to A$1.49 million.
Administrative and corporate costs amounted to approximately A$85,000, covering audit, insurance, ASX listing fees, and other corporate overheads. Related party payments of around A$49,000 were made, primarily for executive and director remuneration, reflecting ongoing governance and management expenses during this preparatory phase.
No Mineral Tenements Yet, Acquisition Progressing
As at quarter-end, Invert Graphite holds no mineral tenements, with its asset base poised to expand pending completion of the Tanzanian Critical Minerals Project acquisition. This project represents a critical pivot for the company, potentially unlocking value in a sector of growing strategic importance amid global demand for critical minerals.
Investors should note that the success of the capital raise and the acquisition remains subject to market conditions and regulatory approvals. The company’s current cash runway, estimated at approximately 2.7 quarters based on current outgoings, highlights the importance of the forthcoming share offer to sustain operations and advance its strategic objectives.
Looking Ahead
Invert Graphite’s next steps will be closely watched by the market, particularly the outcome of the share offer and the progress of the Tanzanian project acquisition. These developments will be critical in determining whether the company can transition from its current holding pattern into active exploration and production phases, delivering value to shareholders in a competitive critical minerals landscape.
Bottom Line?
Invert Graphite’s capital raise and acquisition efforts set the stage for a pivotal growth phase, but execution risks remain.
Questions in the middle?
- Will the share offer reach its target and secure the necessary funding for the Tanzanian acquisition?
- How will the ASX respond to requests for further waivers beyond April 2025?
- What is the timeline and expected impact of the Tanzanian Critical Minerals Project on Invert Graphite’s valuation?
