Renascor Resources Limited (RNU), Adelaide, South Australia, has received firm commitments to raise $15 million through an institutional placement.
The minerals explorer will issue 187.5 million fully paid ordinary shares at 8 cents per share which represents an 11.1 per cent discount to the last close price of 9 cents per share and a 15.4 per cent discount to the five-day volume-weighted average price.
Excitingly, the fresh capital means Renascor’s Siviour Battery Anode Material Project is fully funded up to the construction phase, which is expected to commence next year.
Specifically, the $15 million will be used to complete engineering studies, regulatory approvals, product qualification and offtake, front-end engineering design, produce a pilot plant and for due diligence work.
“The success of the placement is a strong endorsement of Renascor’s ambition to become the world’s first integrated, in-country mine and PSG operation outside of China at a time of increasingly strong demand for Battery Anode Material to feed the electric vehicle (EV) revolution,” Managing Director David Christensen said.
Located in South Australia, the Siviour operation is made up of three significant components. These include the Siviour graphite deposit, which is the world’s second largest proven reserve of graphite and the largest graphite reserve outside of Africa, the Siviour graphite mine and concentrator, and the purified spherical graphite (PSG) production facility.
Renascor is developing the project into a reliable producer of high-value PSG for the rapidly growing lithium-ion battery and EV market.
The placement is expected to settle on April 29 with shares allocated on the following day.