Lansdowne Oil & Gas (LSE:LOGP) shares jumped 11.1% to 0.1p after it agreed to buy the Macaubas graphite project and completed a conditional £1.9m placing.
SGM holds two exploration licences covering 2,805.82 hectares near Macaubas in Bahia, early-stage work has proven graphite mineralisation and the licences were granted in August 2024 with an initial expiry date of 30 August 2027.
"We are excited by the proposed acquisition of SGM and the Macaubas project, which has yielded robust exploration results to date and is situated in a proven mining district," CEO Stephen Boldy said.
Net proceeds will fund an 18‑month exploration and working capital programme including integration of surface mapping with aerogeophysical data, bulk sampling, 10km of ground IP, 2,000 metres of trenching and follow-up drilling to define maiden drill targets and progress toward a maiden resource and preliminary economic assessment, subject to further funding.
Luis Azevedo is proposed for appointment to the board, the Company intends to change its name to Lansdowne Resources
The fundraising comprises a placing of 1.9bn shares at 0.1p raising £1.9m, a WRAP retail offer of up to 190m shares at 0.1p raising up to £190,000, a proposed 5:1 share consolidation, and vending shareholders in SGM have committed £450,000 to the placing. The company will also issue a bonus class of preference shares to ringfence rights to the Group's Energy Charter Treaty arbitration claim (in excess of US$100m) while qualifying shareholders on readmission will be entitled to 20% of any net award, and completion is conditional on shareholder approvals and AIM readmission.
