AFR: Renascor Resources in $50m placement


Listed critical minerals play Renascor Resources launched a $50 million placement on Thursday morning, which would be followed by a $10 million share purchase plan.

The offer was priced at 27¢ a share, a 12.9 per cent discount to the last close.

Renascor’s Sivious battery anode material project in South Australia is heading towards a final investment decision this year.

It’s previously told investors Sivious had the world’s second largest proven graphite reserve, with a vertically integrated operation to produce PSG for use in lithium-ion batteries to be located completely inside South Australia.

It’s got non-binding offtake agreements with Korean POSCO, Chinese firms Zeto and Minguang New Material and Japan’s Hanwa Corporation. Renascor also received a $185 million loan facility out of the government’s $2 billion critical minerals facility.

According to the term sheet, the $50 million raise would go towards long lead-time procurement and acquisitions ($18 million), front-end engineering and detailed design ($15 million) and working capital ($7 million) among other things.

Petra Capital and Canaccord Genuity were the joint lead managers.

Renascor had a $591 million market capitalisation before the raise. Bids were due 5pm Thursday.

Source: The Australian Financial Review