Talga’s A$10M Placement Hinges on Shareholder Nod Amid Project Push

Strategic Capital Raise to Accelerate Growth

Battery materials innovator Talga Group Ltd (ASX: TLG) has announced a successful capital raise of A$10 million through a two-tranche placement of new shares priced at A$0.40 each. This move underscores Talga’s commitment to advancing its flagship Vittangi Anode Project in Sweden, a key initiative in the company’s portfolio aimed at supplying sustainable battery materials for the growing electric vehicle and energy storage markets.

The placement, which represents approximately 5.8% of Talga’s existing share capital, was met with strong demand from both new and existing institutional investors, including notable backers Pentwater Capital and Yandal Investments. Importantly, all members of Talga’s board have also participated, signaling confidence in the company’s strategic direction.

Funding Focused on Pre-FID and Supply Scale-Up

Proceeds from the placement will primarily support pre-final investment decision (pre-FID) activities for the Vittangi Anode Project. This includes scaling up the supply of Talga’s proprietary Talnode-C natural graphite anode material to offtake partners and customers, advancing project finance arrangements, and pursuing grant development opportunities. Additionally, the funds will bolster Talga’s general working capital, providing operational flexibility as the company navigates this critical development phase.

The placement shares will be issued at a 9.9% discount to the recent 10-day volume weighted average price, a common practice to incentivize investor participation. Alongside the shares, investors will receive unlisted options exercisable at A$0.58 over two years, offering potential upside if Talga’s share price appreciates.

Governance and Next Steps

The first tranche of the placement is expected to settle by late May 2025, with shares commencing trading shortly thereafter. The second tranche, which includes director participation, awaits shareholder approval at a general meeting scheduled for late June. This approval is a key milestone, as it will determine the finalization of the placement and the full infusion of capital.

Talga’s leadership, including Managing Director Mark Thompson, has emphasized the strategic importance of this capital raise in underpinning the company’s growth trajectory and reinforcing its position as a sustainable battery materials supplier. With the Vittangi project progressing, investors will be closely watching for updates on project milestones and financing developments.