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EcoGraf's expansion plans raise interest

29th July 2021

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) - The Australian government’s export credit agency Export Finance Australia has given ASX-listed EcoGraf a non-binding letter of support to secure a $35-million loan facility for the planned expansion of its battery anode material facility, in Western Australia.

Production capacity for EcoGraf’s Stage 1 of the facility will be 5 000 t/y of battery-grade spherical graphite, increasing to 20 000 t/y with the completion of Stage 2, with the processing plant expected to cost some $72-million and to employ some 275 staff during construction.

The company will fund the initial phase of the development from its existing cash reserves from a recent A$54.6-million capital raise, while the Stage 2 expansion would be financed through a combination of cash reserves and loan funding.

EcoGraf told shareholders on Thursday that the letter of support from Export Finance Australia was an important milestone in the development plans.

Any final commitments from Export Finance Australia will be subject to the satisfaction of a number of conditions customary to loans of these nature.

Edited by Creamer Media Reporter

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