- EcoGraf (EGR) has received conditional approval for a loan of up to US$40 million (A$56 million) by the Australian government
- The loan comes as part of the $2 billion Australian Government Critical Minerals Facility
- The company will use the money for planned expansion of its Australian Battery Anode Material Facility
- The proposed loan is subject to a number of conditions relating to completion of all due diligence
- EcoGraf shares are up 4.69 per cent to 67 cents
EcoGraf (EGR) has received conditional approval for a loan of up to US$40 million (A$56 million) by the Australian government.
The loan comes under the $2 billion Australian Government Critical Minerals Facility.
The company will use the money for the planned expansion of its Australian Battery Anode Material Facility to 20,000 tpa.
The Critical Minerals Facility was announced by the Australian Government in September. Its objective is to help secure the vital supplies of resources needed to drive the new energy economy and support the resources jobs of the future.
The proposed loan is subject to a number of conditions relating to the completion of all due diligence to the satisfaction of Export Finance Australia.
EcoGraf has appointed financial advisors to coordinate the remaining due diligence activities with Export Finance Australia to enable the parties to execute binding agreements for the loan.
The facility is to be constructed in the Rockingham-Kwinana Strategic Industrial Area, 30km south of Perth in Western Australia. It will use the company’s purification technology to produce high-quality battery anode material using natural flake graphite for export to Asia, Europe and North America.
The assessment process for the West Australian Government Works Approval and the City of Rockingham Development Approval typically takes three to four months, during which EcoGraf will finalise major construction contracts, procure key processing equipment and complete detailed engineering plans.
The Federal Government earlier recognised the Company’s new Battery Anode Material Facility by awarding it Major Project classification, while the Western Australian Government gave it Lead Agency status.
EcoGraf shares were up 4.69 per cent to 67 cents at 10:41 am AEDT.