Magnis raises working capital to advance Townsville battery project
Battery manufacturing hopeful Magnis Energy Technologies says it is making significant progress on its Townsville project.
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BATTERY manufacturing hopeful Magnis Energy Technologies says it is making significant progress on its Townsville project as planning approvals needed to allow the facility to be built on council-owned land southwest of the city advance to public consultation.
Magnis has reported its September quarter results, buoyed by an agreement with Dubai-based financier Negma Group to tip in up to $8 million in working capital.
Negma Group will stump up the cash over the coming year in return for monthly tranches of Magnis shares issued at an 8 per cent discount to the previous 10-day average price.
It follows Magnis raising about $11 million from share placements and options over the past year.
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In the September quarter report, Magnis chairman Frank Poullas said the period had been an important one for the company.
“We’ve made significant progress on the iM3TSV battery plant with National Australian Bank being appointed as advisers and the completion of the feasibility study, highlighting the strong economics of the project,” Mr Poullas said.
The study found an 18 gigawatt-hour capacity battery plant would cost $3.05 billion and provide a 20 per cent return on investment.
Magnis wants to start construction on a $1 billion first stage plant in the third quarter of 2020, as well as develop a graphic mine in Tanzania to supply battery anode material.
The council is providing land for the battery project from its Lansdown holdings west of the city.
Deputy Mayor Les Walker said public notification for an amendment to the planning scheme for the Lansdown Industrial Precinct opened on November 4.
“The work we are doing with Lansdown is groundbreaking and will really help our economy transition to future-proof industries that will create thousands of jobs for locals in the advanced manufacturing, processing and technology sectors,” Cr Walker said.
“I would encourage all residents to jump on to our website when the notification period goes live and to see what council is aiming to achieve in renewable industries.”
Originally published as Magnis raises working capital to advance Townsville battery project