Renascor Resources (ASX:RNU) has closed its share purchase plan, with valid applications received for about $1.2 million worth of shares at 2.7 cents each.
The share purchase plan, in conjunction with the recent share placement, is raising over $7.7 million and will allow Renascor to continue advancing its Siviour Graphite Project in South Australia.
The company’s pre-feasibility study (PFS) for Siviour has confirmed robust project economics, with post-tax net present value of US$500 million or US$407 million based on two different development options.
Renascor’s PFS is based upon developing a single graphite deposit, the Siviour Graphite Deposit, to produce natural flake graphite concentrates over a 30-year mine life.
Accelerated development plan
Notably, the Siviour Graphite Deposit has an ore reserve of 45 million tonnes at 7.9% TGC (total graphitic carbon) for 3.6 million tonnes of contained graphite.
Renascor intends to continue the accelerated development of Siviour, with upcoming work programs expected to include the commencement of the definitive feasibility study (DFS).
The company is also planning to advanced offtake discussions with potential end-users of Siviour graphite products.
> @Renascor_ASX $RNU was exposed to #steel and #Graphite enterprises at the current Ferro Alloy conference in Wuhan where @Mastermines were present. Major meetings to be held in Beijing this week in preparation for a return trip with Renascor executives in May. pic.twitter.com/sf37vsXLww— Renascor (@Renascor_ASX) April 19, 2018
Renascor managing director David Christensen said: “As our dialogue continues with potential offtake partners, it is increasingly clear that Renascor’s Siviour Project has a number of qualities that position it to compete on the world-stage with the best graphite projects globally, and as a result, we are increasingly confident of driving strong returns for shareholders as we move along the development curve towards production.”