PERTH (miningweekly.com) – Graphite developer Renascor Resources will raise A$65-million in a share placement to institutional investors, to accelerate the expansion and development of its Siviour battery anode materials (BAM) project, in South Australia.

The ASX-listed company on Tuesday reported that it had received binding commitments from institutional, sophisticated and professional investors for the placement of 241-million new shares, at a price of 27c each.

The shares will be placed in a single tranche under the company’s existing placement capacity, with the placement price representing a 12.9% discount to Renascor’s last closing price on April 20, and an 11.9% discount to the company’s five-day volume weighted average share price.

“The result of the capital raise is an outstanding endorsement of Renascor’s ambition to become a supplier of 100% Australian-made and low-cost purified spherical graphite for lithium-ion battery anode makers worldwide,” said MD David Christensen.

“The funds raised will allow Renascor to accelerate the development of an expanded Stage 1 operation that will aim to capture the substantial value inherent in the growing demand for the Siviour purified spherical graphite (PSG) product.”

In addition to the share placement, Renascor will also undertake a share purchase plan (SPP), allowing existing shareholders to subscribe for up to A$30 000 worth of new shares in the company, also at a price of 27c each.

The SPP is targeted to raise up to A$10-million, and is not underwritten.

Earlier this year, Renascor was conditionally approved for a A$185-million government loan to fund the development of the Siviour project. The approval of the Renascor loan facility is subject to a number of conditions, including completion of all due diligence to the satisfaction of Export Finance Australia. Satisfaction of all conditions of approval, and completion of full form documentation, will coincide with a planned final investment decision (FID) in 2022.

The Sivour project, which was also previously granted Major Project status, includes a graphite mine and concentrator located in the Eyre Peninsula and a downstream PSG manufacturing facility located in Port Adelaide.

The project is on track to become the first in-country integrated graphite mine and battery anode material operation outside of China, positioning Australia as an important participant in the global battery industry and electric vehicle markets. 

The Stage 1 project is expected to have a 28 000 t/y PSG production capacity, and Renascor has inked non-binding offtake agreements with leading global anode companies covering up to 60 000 t/y of PSG.

An FID on Siviour is expected before the end of the year.