Talga Group's A$5.0 million prospectus offer

Talga Group Ltd (ASX: $TLG) is offering eligible shareholders the opportunity to subscribe for fully paid ordinary shares in the company under a prospectus to raise an intended sum of A$5.0 million. The offer is open to shareholders who were registered as holders of shares at a specified date and whose registered address is in Australia or New Zealand. The issue price of the new shares under the prospectus is A$0.38 per share. The company recently conducted an institutional placement which raised A$9.5 million. The proceeds from the placement and prospectus offer will be used for various purposes including project development, expansion studies, lithium joint venture, and general working capital. The offer is not underwritten, and the company may apply scale backs if the offer is oversubscribed. The closing date for the offer is 23 August 2024. Shareholders can participate in the offer by following the instructions on their personalized application form or online. The company urges shareholders to read the offer document carefully and in its entirety before deciding whether to participate in the prospectus offer.

Executive Commentary

The purpose of the Offer and Placement is to fund pre-execution activities during the final stages of Vittangi Anode Project development, progress mineral resource and anode production expansion studies, progress the company's lithium joint venture, and general working capital. The effect of the Offer on the capital structure of the company is detailed, assuming the New Shares are issued. The company outlines specific risks associated with an investment in the company, including operating and budget risks, additional requirements for capital, offtake arrangements, licences, permits, processing, and approvals risks, intellectual property risks, mineral and exploration risks, development and commercialization risks, reliance on key management, and environmental and social impact constraints.

Summary of TLG's Prospectus Offer

Talga Group Ltd (TLG) is offering eligible shareholders the opportunity to subscribe for fully paid ordinary shares in the company under a prospectus to raise an intended sum of A$5.0 million. The offer is intended to fund pre-execution activities during the final stages of Vittangi Anode Project development, progress mineral resource and anode production expansion studies, progress the company's lithium joint venture, and general working capital. The company's major activities and financial information can be found in its Interim Financial Report and annual financial report. TLG's resource estimates are based on industry practice and may change as new information becomes available. The company's reserve estimates are prepared in compliance with JORC guidelines and are verified by independent mining experts. TLG is exposed to commodity price volatility and exchange rate risk, particularly in relation to graphite and graphene. The company faces pandemic risk, access to infrastructure risk, and competition from other international graphite producers and explorers. The company's Prospectus provides detailed information about the rights and liabilities attaching to new shares, the market price of shares, dividend policy, substantial shareholders, directors' interests, remuneration of directors, related party transactions, and expenses of the offer.