Shares in Ecograf Ltd (ASX: EGR) are storming higher today after the company announced positive developments regarding a project debt facility application. During the opening minutes of trade, the Ecograf share price reached an intraday high of 42.5 cents.
However, after some profit taking, the company's shares have retreated to (at the time of writing) 41.5 cents, up 9.2%.
What's driving the Ecograf share price?
The Ecograf share price on the rise today on the back of the company's latest news.
Ecograf highlighted that during the recent quarter, it applied for a $45 million project debt facility from Export Finance Australia. The company submitted development reports and an engineering study report to secure funds to construct a new battery graphite facility.
According to its release, Ecograf is compiling additional reports to support its loan application. It expects that final credit approval will be received from Export Finance Australia within the next two months.
As a result, Ecograf has begun finalising plans for the construction of the new state-of-the-art processing facility in Western Australia. Once built, the battery graphite facility will manufacture graphite products for export to Asia, Europe and North America.
The company further revealed it has received considerable interest from anode cell, battery and electric vehicle manufacturers.
Quick take on Ecograf
Based in Australia, Ecograf is engaged in the exploration and development of graphite and nickel projects in Tanzania. The company uses innovative technologies to recover graphite from recycled batteries, thus reducing waste and environmental impact.
Ecograf share price snapshot
Over the past 12 months, the Ecograf share price has accelerated over 425%. These strong gains reflect growing positive sentiment among investors regarding the lithium-ion industry with many of Ecograf's fellow ASX-listed producers also posting whopping gains over this time.
In January alone, Ecograf shares are up more than 140%, reaching a new multi-year high of 44 cents last week.
Based on the current Ecograf share price, the company has a market capitalisation of around $142 million.
