Special Report: Renascor has launched a fully underwritten $70m institutional placement to progress development of its advanced Siviour battery anode material project in South Australia.

The placement of about 254.5 million shares priced at 27.5c comes after the company received approval from South Australia’s Department of Energy and Mining (DEM) of the Program for Environment Protection and Rehabilitation (PEPR) for its proposed Siviour Mine and Concentrator.

This approval was a key condition for the $185m loan from the Federal Government’s Critical Minerals Facility, which along with cash of $140m as of 30 November 2022, ensures that Renascor Resources (ASX:RNU) is well positioned to advance development of its vertically integrated manufacturing operation.

Siviour seeks to produce sustainable and ethically-sourced battery anode material for the lithium-ion battery market.

“Renascor’s ambition is to become a reliable supplier of 100% Australian-made purified spherical graphite for lithium-ion battery anode makers worldwide,” managing director David Christensen said.

“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.

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

The BAM study is designed to assess the potential to increase production of purified spherical graphite (PSG) to meet growing demand from the lithium-ion battery sector.

Use of proceeds

Proceeds from the placement, which is priced at 14.2% discount to the 10-day volume weighted average price of RNU shares, will be used to bring forward the commencement of construction and operation of the Siviour mine and concentrator.

This is aimed at accelerating project development and brings forward the timeline for the Stage 2 expansion.

It also capitalises on increasingly favourable graphite market dynamics and maximises the potential to realise near-term cash flow from product sales by bringing the graphite concentrate operations into production as soon as possible.

Barrenjoey Markets Pty Limited, Canaccord Genuity (Australia) Limited and Petra Capital Pty Ltd are acting as joint lead managers, bookrunners and underwriters to the placement.

 

 

 

This article was developed in collaboration with Renascor Resources, 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.

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