EcoGraf nabs $54.6M in placement to fund construction of materials facility

Image Credit: EcoGraf

Now fully funded, EcoGraf inches closer to completing the construction of its commercial-scale battery anode material facility. 

EcoGraf Limited (ASX:EGR) has received firm commitments to raise $54.6 million via a share placement to investors at $0.06, the WA-based graphite company announced earlier today.

The Company revealed that the cornerstone investment was provided by three institutional investors: a New York-based ESG fund, a German-based global fund manager and a leading Australian fund manager.

Capital raising from the successful placements will allow EcoGraf to complete phase one construction of its new processing facility in Western Australia, which saw engineering works on 8 February.

According to EcoGraf, proceeds of the placement will fund the following activities:

  • Construction and operational commissioning of the first phase of the battery anode material purification facility in Western Australia;
  • Advancement of the battery anode material recycling programs;
  • Finalisation of debt financing arrangement for the Epanko graphite mine
  • Product development; and
  • General working capital

Citing the growing interest in sustainable battery manufacturing across Europe, EcoGraf also unveiled plans to develop a 2nd battery anode material facility in the region.

“Investigations into suitable industrial sites have been undertaken and the Company is planning for preliminary siteworks, permitting and engineering activities,” the release said.