PERTH (miningweekly.com) – ASX-listed Renascor Resources is hoping to raise A$70-million in a fully underwritten institutional placement to progress its Siviour battery anode material (BAM) project, in South Australia.

The company will issue 254.5-million shares, at a price of 27.5c each, representing a 14.1% discount to its last closing price and a 14.2% discount to its ten-day volume weighted average share price.

The placement will be done in a single tranche under the company’s existing placement capacity and will not require shareholder approval.

Renascor told shareholders on Wednesday that following the recent approval of the Program for Environment Protection and Rehabilitation (PEPR) for the proposed Siviour graphite mine and concentrator, the company was looking at opportunities to accelerate the development of the BAM project and become a secure producer of Australian-made purified spherical graphite (PSG) for the lithium-ion battery sector.

Proceeds from the placement will be used to solidify the early-mover advantage, and will bring forward the construction and operation of the Siviour mine and concentrator.

“Renascor’s ambition is to become a reliable supplier of 100% Australian-made PSG for lithium-ion battery anode makers worldwide. The funds raised via this placement, together with the recently received PEPR approval, bring us significantly closer to realising this objective, as we look to accelerate our development timeline by bringing forward the commencement of construction of the Siviour mine and concentrator,” said MD David Christensen.

“We now look forward to completing our optimised BAM study and ultimately reaching a final investment decision next year.”

Renascor intends to integrate the Siviour graphite mine and concentrator operation with the BAM project, using concentrates from the Siviour mining operation to produce PSG for use in lithium-ion battery anodes.

Renascor is undertaking a number of workstreams on the BAM project, including an optimisation study to increase PSG production from the planned 28 000 t/y to use the maximum processing capacity approved by the PEPR, and resource expansion drilling.

The company has secured a conditional A$185-million loan from the Australian government under the A$2-billion Critical Minerals Facility and is in discussions regarding further funding from offtake partners, pre-payments, and other strategic capital providers. Along with the proceeds of the placement, the company expects these funds to support the ongoing development of the BAM project including the potentially expanded PSG production capacity