Resource deal assures IG of world class feed supply

 

International Graphite has struck a deal to acquire the Comet Resources Ltd (ASX:CRL) Springdale graphite resource in a landmark arrangement that will create Western Australia’s first vertically integrated graphite production facility, from mine to customer.

The vend-in arrangement, with a market value for the Springdale resource of A$8 million, was announced today at International Graphite’s Annual General Meeting, in Perth.

Watch the video and find out why Comet Resources Managing Director Matt O’Kane is excited to be part of the high end graphite value chain.

IG Chairman Phil Hearse said the new vertically-integrated business would expand Western Australia’s footprint in the multi-billion dollar global etransport and renewable power storage markets and help the Collie economy transition from its traditional reliance on coal.

The Springdale resource will give IG control of its graphite feedstock with a supply that is conveniently located and uniquely suited to the new downstream plant. Situated 150km from Esperance, on WA’s south coast, the high grade zone of the Springdale JORC compliant Inferred Resource of 2.6 Mt @ 17.5% represents one of the highest grades of graphite. Testwork has shown that the material is ideally suited to the production of battery anode material.

“Our partnership with Comet Resources opens a world of export opportunities for WA,” Mr Hearse said.

“Global manufacturers are struggling with the huge, unmet demand for battery anode material and they are searching for suppliers who can assure them of consistent, high quality product.

“We have the resources, the skill and the governance to meet the exacting demands of international manufacturers, particularly leading automotive and electronics brands in Europe and the US.”

Global demand for lithium-ion battery anode components is expected to grow from USD 8.4 billion in 2021 to USD 21.0 billion by 2026, at a CAGR of 19.9%[1].

Comet will receive 40,000,000 shares and own a 40% stake in International Graphite prior to International Graphite’s Initial Public Offering (IPO) and admission to the ASX, which is targeted within six months.

Work is also progressing on the Collie processing plant which is being developed in stages. Research and development equipment is currently on site, with a pilot spheroidising plant being delivered and a micronising production line to follow.

Find out more about the Springdale resource.

[1] https://bwnews.pr/3np9xS2