La Mancha Fund SCSp, a fund advised by La Mancha Capital Advisory (La Mancha), has agreed to invest USD10 million to acquire a 19.9 per cent stake in SRG Mining Inc (SRG), which is developing the Lola Graphite Project (Lola) in the Republic of Guinea.
This investment represents a significant further step in La Mancha’s strategy of broadening and diversifying the Fund’s portfolio of battery metals developers and producers; this is in addition to the Fund’s investments in gold miners.
The transaction will consist of a private placement of 22,442,941 of SRG’s common shares to the Fund at a price of CAD0.56 per share, which represents a 20 per cent discount to the unaffected average share price of reference (CAD0.70/sh). Once complete, the Fund will own 19.9 per cent of SRG’s issued and outstanding common shares, making it one of SRG’s largest shareholders.
