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La Mancha Holdings, a Luxembourg-based mining company founded by Egyptian billionaire Naguib Sawiris, is planning to invest $10 million in SRG Mining Inc (SRG), a Canadian mining company focused on developing the Lola graphite deposit.
Following the completion of the transaction through La Mancha Capital Advisory (La Mancha), a subsidiary of the Naguib Sawiris-led La Mancha Holdings, the fund’s portfolio will include nickel and a graphite developer, as well as a wide range of additional investment opportunities in energy transition commodities that are actively being considered.
The planned share acquisition transaction for a total of 22,442,941 shares in SRG at a price of CAD0.56 per share constitutes a 19.9-percent ownership in the graphite mining development corporation. This interest will be kept in addition to the fund’s stakes in gold miners.
The management disclosed that the investment represents a significant step in La Mancha’s expansion strategy which includes broadening and diversifying the fund’s portfolio of battery metals developers and producers.
In response to the deal, Vincent Benoit, the chief investment officer of La Mancha, stated: “The fund’s investment in SRG marks a further investment in the EV commodities market, continuing the fund’s aim to assist the development of the mines necessary to achieve net-zero.”
With a warchest of $1.4 billion from the gold mining fund it launched last year, La Mancha disclosed that it will assess the viability of the fund participating in further fundraising that would finance SRG through to production.
The cash proceeds invested by La Mancha will be deployed by SRG to develop its Lola graphite project in Guinea, as the $10-million capital injection will spearhead the detailed engineering needed to allow the graphite deposit to be construction-ready by the end of 2022.
