International Graphite Ltd (ASX:IG6) is all set to list on the ASX next week after launching an initial public offer (IPO) earlier this month to raise up to $10 million at an issue price of $0.20 per share.
The integrated battery graphite company’s IPO closed within hours after opening following an overwhelming response from potential investors.
International Graphite operates in the heart of an emerging battery industry and renewable energy hub in Western Australia’s southwest.
Proceeds from the share offer will be used to finalise the company's acquisition of Comet Resource Ltd’s Springdale Graphite Project, near Hopetoun, and will be used for:
- Exploration, expansion and upgrading of the mineral resource estimate
- Testwork and process design
- Mining feasibility study and permitting
Concurrently, funding will progress downstream graphite processing at the company’s new Collie Production Facility, including:
- Installation, commissioning and operation of a graphite spheroidising pilot plant and micronising equipment
- Development of a purification process for graphite concentrate from Springdale
- Feasibility studies for production-scale operations optimised for Springdale concentrates
Vision to establish a fully integrated graphite production business
International Graphite executive chairman Phil Hearse said: “Decarbonisation is fuelling extraordinary forecast demand for batteries worldwide, particularly in renewables, electric vehicles and industrial power storage.
“Our vision is to establish a fully integrated graphite production business, taking graphite and concentrates from Springdale for downstream processing at Collie.
“Building on Australia’s engineering and resource industry know-how, including our team’s extensive experience in graphite, we aim to be an ethical and reliable supplier of high-quality graphite battery anode material and other products, for technology-based customers.
“This will strengthen Australia’s sovereign capability in the critical minerals space and give us supply chain custody from mine to customer.”
Springdale Graphite Project
The Springdale Graphite Project near Hopetoun in southern Western Australia has an inferred resource of 15.6 million tonnes at 6% TGC ((total graphite content), including a high-grade inferred resource of 2.6 million tonnes at 17.5% TGC.
The company intends to expand the inferred resource and seeks to develop a near term mining strategy.
Based on prior exploration, International Graphite’s board believes that there is extensive prospectivity for discovering additional resources on the tenements.
International Graphite was incorporated in 2018 by founder, Phillip Hearse, a metallurgical engineer with extensive experience in the processing, treatment and production of graphite.
The company intends to develop a downstream graphite processing business to treat mined graphite concentrates and produce finished graphite products for specialised industrial applications and Battery Anode Material (BAM) to meet the projected global demand for high-performance batteries including lithium-ion batteries.
Since incorporation, International Graphite has raised about $4 million from private, almost exclusively Australian, investors to assess and establish a downstream processing facility in Collie, Western Australia.
Collie facility, Western Australia.
Collie was selected as a location for the company’s facilities following considerable community support, the establishment of the West Australian Future Battery Industry Strategy and because of the benefits of the existing established infrastructure, workforce and potential access to low-cost power at Collie.
In October 2020, the company completed investigative studies for the establishment of processing facilities at Collie that would produce micronised products, foils and repackaged expandable graphite as a pre-curser to developing a BAM product line.
International Graphite has developed a chemical purification technology to achieve new standards of environmental performance incorporating an innovative Zero Liquid Discharge solution.
Micronised graphite.
In March 2021, the company procured an ultra-high temperature furnace and pilot spheroidising plant.
The equipment is being installed at the company’s Collie Research and Development Processing Facilities.
International Graphite intends to expand the spheroidising capacity in the lead up to BAM production, add a micronising plant and develop graphite purification and other downstream technologies at Collie.
In September 2021, the Company was awarded a $2,000,000 grant from the Collie Futures Industry Development Fund (CFIDF) to assist in the development of the ‘WA Collie Micronising Plant’.
Grant announcement by WA Minister for Regional Development, Hon. Alannah MacTiernan MLC.
Whilst International Graphite planned to obtain feedstock from existing and future producers of graphite concentrates, the company was presented with the opportunity to acquire 100% of the Springdale Graphite Project in Western Australia.
Following completion of the acquisition, the Springdale Graphite Project is intended to become the primary feedstock for the company’s planned downstream processing facilities and will accelerate plans to produce BAM.
Springdale Graphite Project and Collie location.
Metallurgical test work undertaken at the project has shown the amenability of the ore to produce a high-grade concentrate, and preliminary downstream testing at a German graphite testing facility has shown that the concentrate produced from Springdale can be purified to greater than 99.99% TGC and is suitable for BAM.
Inferred Mineral Resource Estimate at Springdale Graphite Project.
In conjunction with the development of technical studies for the supply of graphite concentrates from Springdale a feasibility study for the Collie Processing Facilities to treat Springdale concentrates will be undertaken in addition to the activities at the Collie Research and Development Processing Facilities.
The spheroidising pilot plant and equipment currently being installed at Collie will be commissioned and operated to demonstrate the capability to produce high quality spheroidised product suitable for BAM and establish International Graphite in the marketplace prior to Springdale concentrates being available.
Graphite spheronising mill delivered to the Collie plant.
Initially, purified feedstock will be imported to feed the facility.
Once a decision is made to bring the Springdale Graphite Project online, the capacity of the spheroidising facility will, subject to further funding, be expanded to commercial scale.
In addition, a graphite micronizing plant will be established in Collie as part of the Collie Research and Development Processing Facilities.
Research and development equipment.
The micronizing production line is intended to generate sales of micronised graphite to the engineered products and specialised lubricant markets in Australia and internationally.
Graphite purification technologies and other finished graphite product lines are also intended to be developed at the Collie Research and Development Facilities at a pilot scale.
From left to right: Matthew O’Kane- proposed non-executive director, Phillip Hearse - executive chairman, David Pass - non-executive director and Andrew Worland - non-executive director.