Investors back Renascor with $70 million placement for Aussie made graphite
Renascor Resources has set up its Siviour battery anode material project in South Australia perfectly for a final investment decision in 2023, after securing $70 million in an institutional placement.
Renascor (ASX:RNU) managing director David Christensen says the placement is the final step of a “transformational year”, with domestic and international investors subscribing for 254.5 million new shares at 27.5c a pop.
It places the Canberra-backed project, containing one of the world’s largest reported deposits of natural graphite, on the fast track to development.
The company now has $140 million in the bank and environmental approval for its upstream mine and concentrator ahead of its FID on the major battery metals development.
The project has received major project status from the Federal Government, and conditional approval for a $185 million loan from Export Finance Australia through the $2b Critical Minerals Facility, and will comprise a mine and contractor near Arno Bay as well as a purified spheronised graphite production plant in Port Adelaide.
Christensen said the demand for the Barrenjoey, Canaccord Genuity and Petra Capital lead and underwritten Placement was a testament to the ‘world class nature of the BAM project’.
“The completion of this placement caps off a transformational year for Renascor,” he said.
“The strong demand received from both domestic and offshore institutional investors is a testament to the world-class nature of the BAM Project and the significant steps undertaken by the company to progress its development, following the recent receipt of the PEPR approval and grant of a conditional $185 million Australian Government loan under the Critical Minerals Facility.
“The Placement was well supported by existing Renascor shareholders and will also see a range of new institutional investors join the register.
“The introduction of these high-quality investors, together with the support shown by existing shareholders, has provided Renascor with the flexibility to bring forward construction and operation of the Siviour upstream operations and allows the company to take a staged, de-risked approach to BAM Project development.
“On behalf of Renascor’s board and management, I would like to take this opportunity to thank shareholders for their long-standing support and look forward to seeing the BAM Project progress towards a Final Investment Decision in 2023.”
This article was developed in collaboration with Renascor, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.