Renascor Resources Limited (ASX: RNU) (Renascor) is pleased to announce that it has entered into an Option Agreement to secure land near the Siviour graphite deposit, within the Cleve region of South Australia, for a proposed accommodation facility that will support both the construction and operational phases of its planned graphite mining and processing operation, the upstream portion of Renascor's vertically integrated Battery Anode Material (BAM) project.
Commenting, Renascor Managing Director David Christensen stated: 'This option marks a significant milestone for the BAM Project by finalising our land position for the upstream mining operation and ensuring we have the infrastructure in place to support both construction and long-term operations. In addition to offering a practical, strategic solution to our accommodation needs, the Option Agreement further advances our strategy of completing key long-lead procurement and site activities to reduce project delivery risk and enable Siviour to be among the first ex-China graphite projects that will offer secure, long-term supply to meet the needs of western battery and defence supply chains.'
Discussion
The land for the accommodation facility is located in the Cleve Region of South Australia, a regional service hub for the Eyre Peninsula, with established local infrastructure and social amenities. These include hospital and pharmacy services, public oval and walking trails, grocery store, banking and post office facilities, hotel and telecommunications, power and water infrastructure. The proposed site is approximately 30 km by road from the Siviour graphite deposit. The site, selected for its proximity to the mine site, existing infrastructure and available services and amenities, will house construction personnel during development of the planned Siviour graphite mine and associated infrastructure and accommodate operations staff once commercial production commences. The capacity requirements for the accommodation facility have been optimised through the recently completed Early Contractor Involvement (ECI) process and upstream engineering workstreams, providing a high level of confidence in Renascor's ability to provide appropriately sized accommodation for both construction and operational phases of the project. The Option Agreement completes the final tenure requirement for Renascor's vertically integrated Battery Anode Material (BAM) project, completing Renascor's land-access framework and underpinning project execution readiness. It follows the acquisition of the Siviour mine site land3 , securing an option to lease a site in Bolivar, South Australia for the full-scale commercial Purified Spherical Graphite (PSG) facility4 and the recent conditional developmental approval of Bolivar site.5 . Renascor has secured an option exercisable within the next three years to purchase the site for the accommodation facility from a private company that is active in the agriculture and livestock sectors in the Cleve region of South Australia. Renascor does not consider the consideration potentially payable under the Option Agreement, nor the identity of the counterparty, to be information that a reasonable person would expect to have a material effect on the price or value of Renascor's securities.
Consistent with Renascor's low capital commitment and prudent spend profile, the option structure avoids upfront capital acquisition while providing site security. Under the terms of the Option Agreement, Renascor has immediate access to undertake preliminary investigations without triggering purchase obligations, whilst permitting the continuation of farming operations on the land during the option period.
Next steps
In parallel with finalising the Option Agreement, Renascor has undertaken stakeholder engagement and preliminary site investigations to enable the submission of a development application this quarter for construction of the accommodation facility. Renascor is also advancing design of the accommodation facility in preparation for early procurement activities for modular accommodation units and supporting infrastructure required for the timely delivery of the facility. This ASX announcement has been approved by Renascor's Board of Directors and authorised for release by Renascor's Managing Director David Christensen. Renascor confirms that this announcement contains all material information relevant to assessing the impact of the Option Agreement on the price or value of Renascor's securities and that this announcement is not misleading by omission.
Contact:
David Christensen
Tel: +61 8 8363 6989
Email: info@renascor.com.au
James Moses
Tel: +61 (0) 420 991 574
Email: james@mandatecorporate.com.au
About Renascor
Renascor is developing a vertically integrated Battery Anode Material (BAM) in South Australia. The BAM project comprises: the Siviour Graphite Deposit - the world's second largest Proven Reserve of Graphite and the largest Graphite Reserve outside of Africa6; the Graphite Mine and Processing Operation a conventional open-pit mine and crush, grind, float processing circuit delivering world-class operating costs in large part due to the favourable geology and geometry of Renascor's Siviour Graphite Deposit and a Battery Anode Material Production Facility - where graphite will be converted to Purified Spherical Graphite (PSG) using an eco-friendly processing method before being exported to lithium-ion battery anode manufacturers.
Forward-looking statements and new information
This report may contain forward-looking statements. Any forward-looking statements reflect management's current beliefs based on information currently available to management and are based on what management believes to be reasonable assumptions. It should be noted that a number of factors could cause actual results, or expectations to differ materially from the results expressed or implied in the forward-looking statements. Renascor confirms that it is not aware of any new information or data that materially affects the information included in previous market announcements (as may be cross referenced in this announcement) and that all material assumptions and technical parameters underpinning the Mineral Resource estimates, Ore Reserve estimates, production targets and forecast financial information continue to apply and have not materially changed.
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