Magnis Energy Technologies (ASX:MNS) has entered into an equity finance commitment agreement with New York-based financial institution Global Corporate Finance (GCF).
As part of the agreement, GCF has provided $10 million, with an option to increase to $15 million, which will be applied towards general working capital purposes with a 30-month term.
Magnis Energy Technologies will also issue 20 million options to GCF at $0.06 per share with a four year expiry date.
The agreement is subject to Magnis’ securing shareholder approval, as well as allotting shares and granting options to GCF.
GCF Finance Director Nino Scalamandre says with major supply disruptions in the graphite industry, Global Corporate believes in Magnis and its Nachu Graphite Project and is working with the company to finance the operations.
“We are pleased to be able to support Magnis in its core mission of securing the supply chains and raw materials that underlie the manufacturing economies of the US and its coalition partners,” Scalamandre says.
Magnis Chairman Frank Poullas says the company is continuing to make progress with offtake and financing discussions to support developing the Nachu Project.
The Nachu Project, located in Tanzania, has an orebody with low variation in lithology and mineralisation and low-cost operational method.
The global graphite market is projected to grow from US$14.83 billion in 2021 to US$25.7 billion ($40.81 billion) in 2028. According to the International Energy Agency’s estimates, the graphite market could grow by up to 25x by 2040 relative to 2020, due to the world’s transition to meet the Paris Agreement goals.
Graphite is one of the most stable allotropes of carbon having unique physical and chemical properties. Graphite has been in demand for a long time in steelmaking and as refractory materials in metallurgy due to its high temperature stability and high thermal conductivity.
The battery metal is also found in a range of industrial and technology applications such as automotive components, paints, lubricants, seals, brake linings and grease, modern nuclear reactors, and more.
Magnis Energy Technologies is a vertically integrated lithium-ion battery company with strategic investments in several aspects of the electrification supply chain, including manufacturing of green credentialed lithium-ion battery cells.
Write to Aaliyah Rogan at Mining.com.au
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