The development of the Montepuez graphite project, in Mozambique, is progressing well and the funding strategy has also advanced, ASX-listed Battery Minerals reported on Thursday.
The company said that key construction milestones at the $51-million project, which will operate for ten years at 50 000 t/y, were being met. The construction of the permanent 100-person accommodation camp and the tailings storage facility was well advanced.
In terms of funding, Battery Minerals reported that it had appointed Origin Capital as financial adviser to advance its funding efforts for the mine. Origin is in the process of seeking expressions of interest from potential debt providers.
As part of the funding process, independent technical consultant Behre Dolbear Australia has been appointed to conduct a technical due diligence review, which included a recent site visit.
Benchmark Mineral Intelligence will provide an independent review of the graphite market and specific analysis of where Montepuez fits in the industry cost curve.
“Graphite market experts continue to forecast strong demand and price growth on the back of the lithium battery boom,” said MD David Flanagan. “Montepuez is perfectly placed to capitalise on this enormous opportunity thanks to its low cast base, simple processing route and binding offtake agreements,” he added.