Sarytogan Graphite Limited (ASX:SGA) Receives EBRD Tranche 2 Funding and Positive PFS Peer Review
Equity Investment
Sarytogan Graphite Limited (ASX:SGA) has received A$2,358,790 from the European Bank for Reconstruction and Development (EBRD) as part of its Tranche 2 equity investment. This investment includes the issuance of 14,742,437 shares, resulting in EBRD holding 17.3% of the company’s issued capital. The investment was completed at A$0.16 per share, a 166% premium to last week’s closing price. Combined with Tranche 1 funds received on 22 November 2024, the total investment amounts to A$5,000,000 for 32,250,000 shares.
Prefeasibility Study Peer Review
An independent peer review of the Prefeasibility Study for the Sarytogan Graphite Project by RPMGlobal Asia Limited found no technical fatal flaws and considered the project to have considerable promise. While some high risks were identified, RPMGlobal believes these can be mitigated through further studies and project design adjustments. The EBRD funds will accelerate the Definitive Feasibility Study, including environmental assessments, metallurgy test-work, infill drilling, water investigations, power and transportation studies, and the tendering of engineering scope.
Executive Comments
Managing Director Sean Gregory commented, “The completion of the equity investment from the EBRD reaffirms the global significance of the Sarytogan Graphite Project. This funding allows us to accelerate the ongoing works on the Definitive Feasibility Study for the project. The recent independent peer review of the project by mining consultant RPM Global shares our optimism for the project and is the first of many examples of the EBRD adding value to the project beyond their financial investment. We thank the EBRD for their initiative to support junior mining companies in the pursuit of globally strategic goals.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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