Renascor Resources (ASX:RNU) is on the runway with Export Finance Australia (EFA) giving the company the green light for a $185 million loan from the Australian Government’s $4 billion Critical Minerals Facility get the BAM Project airborne.
The BAM Project combines the Siviour Graphite Deposit in South Australia, the largest known graphite reserve outside of Africa, with a cutting-edge processing facility in the region. It had been previously received conditional approval for government funding.
The facility aims to produce Purified Spherical Graphite using Renascor’s ‘environmentally friendly’ purification process.
“The support from the Australian Government and EFA is testament to the gravity of the opportunity for Renascor, and Australia, to become a world-leading supplier of graphite into the Lithium-ion battery supply chain,” Renascor’s Managing Director David Christensen said.
The loan package includes a $150 million Term Facility and a $35 million Cost Overrun Facility designed to handle any unforeseen increases in capital costs during construction.
“We are delighted to have received confirmation that the $185 million conditionally approved loan from the Critical Mineral Facility is approved to support our strategy of fast-tracking the construction of the upstream portion of the BAM Projec,” Christensen said.
The Critical Minerals Facility, initially funded at $2 billion in September 2021 and later increased to $4 billion in October 2023, plays a pivotal role in supporting Australian critical minerals projects.
Export Finance Australia (EFA) is the nation’s export credit agency and facilitates commercial finance for export trade and infrastructure development, in support of Australia’s global pursuits.
Renascor and EFA will continue to finalise due diligence and complete all necessary conditions to kickstart operations, as Renascor aims to become a key global player as a diversified source of refined graphite products for the EV battery industry.
RNU shares have surged by 32.5%, trading at 11c, as of 3pm AEST.