ASX-listed Mineral Commodities is seeking to raise up to A$15 million (US$9.4 million) to use to progress its Tormin mineral sands operation in South Africa and its troubled Skaland graphite operation in Norway. 

Major shareholders have committed to their entitlements, totalling A$7.9 million.

The entitlement offer will issue up to 501.1 million shares priced at A3c each.

This week, shares in the company were trading at A4c, capitalising it at A$27.65 million.

As of September 30, Mineral Commodities had cash of US$1.4 million and expects a fully subscribed offer to take its cash to A$17.2 million.

At the completion of the offer, it expects debt of A$12.3 million.

The company said the funds will be used to increase Tormin's processing capacity, fund acquisition of the remaining interest in Skaland to increase production, build a graphite anode pilot plant, and reduce creditors.

Chief executive Scott Lowe said the investments would underpin a return to profitability at Tormin.

"Importantly, the funding will support advancement on the battery minerals projects at a time when the global market for graphite and other battery minerals is undergoing positive transformation and attracting investment interest," he said.

News out of China earlier this week that it will ban the export of certain graphite products from December has spurred new interest in graphite project owners.

Drilling and ore production at Skaland recommenced on October 10 after shuddering to a halt more than a month earlier following a mechanical failure of the primary ore production drill rig.

That 21-year-old drill rig has been replaced with a rental rig - which is also "an older" one - while the company considers whether to buy a new or recently rebuilt second-hand unit.

A decision on that is expected in the upcoming 2024 budget planning cycle.

The company expects the impact from the event to be about US$600,000.