Magnis Energy to receive Singaporean capital for Nachu

Magnis Energy Technologies (ASX:MNS) is expecting to receive up to US$320 million of funding from Singapore-based private investment firm PEY Capital to develop the Nachu Graphite Project in Tanzania. 

After 4 months of due diligence, PEY entered an arrangement to source the complete US$320 million in funding for the Nachu project. 

Currently, PEY is in an exclusivity period until 12 April 2024. 

Magnis says the funding will allow the full development of Nachu to produce about 240,000 tonnes per annum of graphite concentrate. 

As part of the financing process, PEY has recently engaged its related Tanzanian entity Tantel, although no further details were released. Tantel is based in Tanzania and is one the largest private investors in the country. It owns and operates companies across sectors including pharmaceuticals, aviation, real estate, utilities, agriculture, trading, gaming, finance, and energy. 

Magnis Energy Technologies is a vertically integrated lithium-ion battery technology and materials company with assets, investments, and partnerships in the electrification supply chain. 

The Nachu Graphite Project is located near Ruangwa, in the south-east of Tanzania. The project is some 220km away from the Tanzanian port of Mtwara. Magnis says the Nachu Project demonstrates a large orebody with very low variation in lithology and mineralisation. 

More than 82% of the graphite concentrate produced at Nachu Graphite Project is above 150 microns which makes the product very coarse. The graphite concentrate below 300 microns will be produced at 99%TGC which is extremely high versus the current industry standard of 94-96%TGC. 

To date, all major mining and environmental approvals have been received and an updated Bankable Feasibility Study (BFS) was completed in September 2022 and was released on 27 September 2022. 

The valuation and compensation phase has been completed along with the resettlement village and initial infrastructure works.

Write to Aaliyah Rogan at Mining.com.au   

Images: Magnis Energy Technologies
Author Image
Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.