Renascor Resources receives $185m loan facility to fund Siviour graphite development

Export Finance Australia (EFA) has approved a $185 million loan facility to Renascor Resources (ASX: RNU) for the fast-tracked construction of a vertically-integrated battery anode material (BAM) manufacturing facility at the Siviour graphite project in South Australia.

The loan comprises a $150m term facility and a $35m overrun facility to support any unforeseen increases in capital costs.

Drawdown will be subject to a number of conditions including completion of all due diligence to the satisfaction of EFA.

The loan facility was arranged by BurnVoir Corporate Finance and was approved under the federal government’s $4 billion critical minerals facility.

The funds will be used for accelerated development of the upstream graphite mine and plant that will manufacture purified spherical graphite using Renascor’s eco-friendly processes.

‘Early-mover advantage’

Renascor managing director David Christensen said the approval would give the company an “early-mover advantage.”

“Our phased development strategy allows us to enter the market with a reliable supply of natural graphite concentrates from Australia, generating early cash flows and accelerating the production of graphite concentrates,” he said.

“We are fortunate to have a large world-class asset in Siviour and the support from the Australian government and EFA is testament to the gravity of our opportunity to become a world-leading supplier of graphite into the lithium-ion battery supply chain.”

Massive deposit

Renascor’s BAM project is based around the Siviour graphite deposit, which is the world’s second largest proven graphite reserve and the largest outside of Africa.

The project will be built around a conventional open-pit mine and processing plant which utilises a crush-grind-float circuit.

It is expected to deliver world-class operating costs over a 40-year mine life due to the favourable geology and geometry of the deposit.

The BAM facility will convert graphite concentrate to purified spherical graphite for export to lithium-ion battery anode manufacturers.

Mr Christensen said the company was progressing advanced engineering designs for the plant and non-processing infrastructure.

It is also discussing binding offtake terms with existing partners and other battery-anode market participants.