Special Report: Investors are clearly following Talga’s progress in developing its Swedish integrated graphite anode facility with firm commitments received for a $10m placement.

The company recently developed a fast-track pathway to commercial anode production by combining development of the anode facility into a single commercial stage without compromising the overall economic and financial parameters set out in the pre-feasibility study.

Other notable milestones that Talga Resources (ASX:TLG) has achieved in recent months include expressions of interest for its Talnode lithium-ion battery anode products exceeding 300 per cent of the planned annual capacity and its flagship Vittangi project being tagged a “mineral deposit of national interest” by the Swedish Geological Survey.

Approval has also been given for trial mining of up to 25,000 tonnes of graphite ore to be extracted from Vittangi.

This progress and the interest it has generated has resulted in the company receiving applications from institutional, sophisticated and professional investors well in excess of the $10m it sought through its placement priced at 50c per share.

“This strategically sized placement will enable Talga to execute the next steps in building it’s Li-ion anode production facilities in Europe, while maintaining a tight capital structure to provide shareholders best leverage to project success,” managing director Mark Thompson said.

“The raising also strengthens our position as we enter deeper finance discussions with multiple potential project partners.”


Funding near-term project development

Proceeds from the placement will be used to scale-up manufacturing of Talnode-C customer samples to satisfy larger automotive original equipment manufacturer (OEM) qualification processes underway.

Funds will also be used to progress the commercial detailed feasibility study (DFS) to support design, engineering and project finance options for Vittangi along with expansion, infill and geotechnical drilling to better understand the project’s ultimate tonnage potential and support mine planning.

The DFS, which will refine the feasibility work on the start-up phase, is expected to be completed in the first quarter of 2021.

Talga plans to start construction in 2022 with production of about 19,000 tonnes of commercial anode beginning in 2023.



This article was developed in collaboration with Talga Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.