EcoGraf (ASX:EGR) has secured a life-of-mine special mining licence for the Epanko Graphite Project in Tanzania from the Government of the United Republic of Tanzania.
The special mining licence, which is granted for 25 years, covers Epanko’s updated resource estimate of 290.8 million tonnes @ 7.2% total graphitic carbon.
EcoGraf, which has a market capitalisation of $47.68 million, says the licence will allow for a multi-generational operation at an expanded production capacity.
Plans are underway to define a staged expansion pathway to achieve production and to meet the forecast growth in demand for natural graphite anode material for the global electricity mobility and clean energy storage markets.
The company adds the licence also provides certainty and is considered a key regulatory permit required to advance the project’s financing process.
EcoGraf has mandated KfW IPEX-Bank to conduct advisory, structuring, and arranging services to obtain import credit cover and a senior debt facility of up to US$105 million ($169.1 million) for the construction of Epanko.
Stage-one development at the project includes a 73,000-tonne per-year graphite processing plant.
The company’s share price increased 23.8% to $0.130 as of 11.45am AEDT today.
EcoGraf is focused on building a vertically integrated battery anode materials business to produce high-purity graphite products for lithium-ion battery and advanced manufacturing markets.
Write to Aaliyah Rogan at Mining.com.au
Images: EcoGraf
