American Manganese Inc (CVE:AMY), the critical metal group, revealed it will raise $1.5 million (gross) via a private placing.
In a statement, the firm said each unit will be sold at $0.15 and comprise one share and one warrant.
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Each warrant will be exercisable for one share at 0.20 each for two years from closing.
The proceeds will be used mainly for the completion of the group's pilot plant and for general working capital, it said.
Last month, the company told investors it had received 1 metric tonne of cathode scraps from a US-based metal recycler that collects large quantities of this material monthly.
The company has completed the overall flowsheet design for its pilot plant to process scrap materials.
Recently, the firm was exhibiting and meeting with potential investors at the New Orleans Investment Conference.
President and chief executive Larry Reaugh told one interviewer that he believed once the pilot plant was developed and reported, there would be more interest in the firm from Asia and Europe.
Prior to that, another milestone in the next 30 to 60 days, the firm hopes to receive the granting of a patent from the relevant US office, he added.
"We offer a solution that is cradle to grave on looking after and recycling the EV batteries.
"We conserve water. No water goes back into the environment. It's used in the system. It's a complete solution for any battery manufacturer," said the company boss.