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Energizer receives $6M investment from Dundee funds
2016-08-18 12:37 ET - News Release
Mr. Brent Nykoliation reports
DUNDEE'S CMP FUNDS MAKE SIGNIFICANT CAPITAL INVESTMENT INTO ENERGIZER RESOURCES
Energizer Resources Inc. has closed a non-brokered private placement offering of 96,064,286 common shares at a price of seven cents per share for aggregate gross proceeds of $6,724,500.
Investment funds managed by Goodman & Company Investment Counsel Inc., an affiliate of Dundee Corp., purchased CAD$6,000,000 of Shares under the Offering and puts their holdings of Energizer now at just under 20 percent. Sprott Asset Management and significant incumbent shareholders of the Company represented the remaining investors.
The net proceeds of the Offering will be used to fund the completion of a Front End Engineering Design Study (FEED Study) for the Company's Molo graphite project in Madagascar and for general working capital purposes.
The FEED Study is being undertaken in order to determine potential development path options that have been presented to Energizer by prospective strategic partners. The Company may use certain proceeds of this offering to fund the development path that the Company determines to be most optimal.
All Shares issued in connection with the Offering will be subject to a minimum six-month hold period as required by U.S. securities laws, and will also be subject to a four-month hold period (which will run concurrently with the six-month hold period) as required by Canadian securities laws.
The Company has obtained conditional approval from the Toronto Stock Exchange (the "TSX") for the listing of all common shares issued pursuant to the Offering. The Offering is subject to receipt of final approval of the TSX.
About Energizer Resources
Energizer Resources is a mineral exploration and mine development company based in Toronto, Canada, that is developing its 100%-owned, feasibility-stage Molo Graphite Project in southern Madagascar.
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