International Graphite Ltd (ASX:IG6) has struck a funding deal with US-based Pioneer Resource Partners LLC, securing up to $3 million in new institutional investment to help progress its mine-to-market graphite strategy.
The proceeds will support feasibility activities at the company’s flagship Springdale Graphite Project in Western Australia, the advancement of downstream processing operations and general working capital requirements.
Managing director and CEO Andrew Worland said the partnership comes at an important time for the business.
“We are pleased to have the support of Pioneer Resource Partners. The funding will provide flexibility as we continue to advance our projects,” Worland said.
“Graphite is one of the most important critical minerals to Western world supply chains and is at the heart of US government defence, industrial and energy policy making. The geopolitical landscape and regulatory framework sets up perfectly for International Graphite’s mine-to-market business plan.”
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Terms of the deal
The investment will be staged across three tranches. The first, raising $500,000 for $545,000 worth of shares, is expected to be received within a week. A second tranche of $300,000 for $327,000 worth of shares is scheduled within the next 12 months, subject to the investor’s consent.
A third tranche of up to $2.2 million may follow by mutual agreement.
The structure allows International Graphite to either issue placement shares or, if it chooses, repay the subscription amount in cash at market value.
Shares under the agreement will initially be priced at $0.10, representing a 79% premium to the company’s closing share price of $0.056 on September 30, 2025. After the first month, the price resets to a formula tied to volume-weighted average prices, with a floor of $0.037 per share.
For the first tranche, the company will make an initial issuance of 980,000 placement shares and a further 2,045,455 shares in satisfaction of a fee.
Building momentum in graphite
The deal builds on International Graphite’s recent momentum as it advances one of Australia’s largest graphite deposits. The Springdale project is already recognised as a significant resource in the global battery supply chain, with the company also positioning itself in downstream processing to capture added value.
The new institutional support underscores growing investor interest in graphite, a mineral increasingly central to both the energy transition and Western governments’ push to secure critical minerals supply.