- Renascor Resources (RNU) launches its $70 million institutional placement to develop its Siviour battery anode material (BAM) project in South Australia
- The company says the placement another critical step in progressing the project after receiving key approvals from the South Australian Department of Energy and Mining
- The placement also follows Renascor receiving a conditional $185 million loan from the Australian government and is currently in discussions for funding from other avenues
- Approximately 254 million new shares will be issued at 27.5 cents a share and the placement is expected to settle on December 14
- Shares in Renascor last traded at 32 cents on December 6
Renascor Resources (RNU) has launched a $70 million institutional placement to accelerate development of its Siviour battery anode material (BAM) project in South Australia.
The company will issue 254.5 million new shares at 27.5 cents a share, which represents a 14.2 per cent discount to its 10-day volume-weighted average price.
According to the company, the placement is another critical step in the project, following key approvals from the South Australian Department of Energy and Mining.
“Renascor’s ambition is to become a reliable supplier of 100 per cent Australian-made purified spherical graphite for lithium-ion battery anode makers worldwide,” Managing Director David Christensen said.
“The funds raised via this placement will accelerate our development timeline by bringing forward the commencement of construction of the Siviour mine and concentrator,” Mr Christensen said.
“We now look forward to completing our optimised BAM Study and ultimately reaching a
final investment decision next year.”
Renascor said accelerating the development of Siviour will help it capitalise on “increasingly favourable” graphite market dynamics and maximise potential to realise near-term cash flow from product sales.
The company expects the placement will settle on December 14.
The placement funds will complement the conditional $185 million loan Renascor received earlier this year from the Australian government under its $2 billion critical minerals facility.
The company said it is in further discussions for more funding from potential offtake partners, pre-payments, and other strategic capital providers.
Together with the proceeds of the placement, the company expects these funds will support the ongoing development of the BAM project including the potentially expanded purified spherical graphite (PSG) production capacity.
Shares in Renascor last traded at 32 cents on December 6.