International Graphite (ASX:IG6) is planning to develop an expandable processing facility, with a preferred location of Germany, following the establishment of a cooperation agreement with Arctic Graphite and Graphite Investment Partners.
International Graphite will manage the technical, commercial, and construction of the facility.
Technical specialists ProGraphite and Hensen will assist with the assessment.
The scope of the assessment will target a production capacity of 3,000 tonnes per year and a target capital cost estimate of €5 million ($8.93 million). The scope will be based on the use of third-party feedstock.
Based on the outcome, International Graphite and Arctic will form a 50/50 joint venture to finance, build, and operate the facility.
Graphite Investment Partners, which is a shareholder of Arctic, will commit to arrange at least 50% of the expandable graphite facility capital cost estimate in non-dilutive funding. The company has issued a non-binding letter of interest to arrange up to $10 million in funding.
CEO Andrew Worland says the partnership brings together the highest calibre of graphite technical and operational expertise, corporate and financial capability, as well as graphite market experience.
“Successful execution of the development, financing, construction, and operations phases of the expandable graphite facility and our Collie Micronising Facility would see our company operating two production centres capable of production 10,000 tonnes per annum of graphite products,” Worland says.
Graphite Investment Partners Principal Aidan Nania adds that the demand fundamentals for expandable graphite are compelling.
“There is little or no production of expandable graphite in the European Union, although the EU accounts for 30% of global consumption outside China,” Nania says.
Expandable graphite is created when natural flake graphite is treated with intercalating agents, usually acids inserted between the graphite layers. It is used in foils, flame retardants, and a range of other products with Europe importing most of its consumption requirements and needing a new independent domestic supply source.
When heated, intercalated compounds rapidly vaporise, forcing the graphite layers apart and expanding the material by up to 300 times its original volume. The transformation occurs in seconds and creates a lightweight, insulating carbon structure.
Further, Comet Resources (ASX:CRL) has sold 27.5 million shares in International Graphite to investors introduced by the company and its advisors Pamplona Capital.
Comet will apply $1.25 million of the proceeds from the sell down in satisfying all debts owing to International Graphite.
International Graphite is an emerging supplier of processed graphite products, including active anode materials for lithium-ion batteries in electric vehicles, defence applications, and global energy transformation.
Write to Aaliyah Rogan at Mining.com.au
Images: International Graphite
