EcoGraf (ASX:EGR) share price flying 14% higher on funding update

What was announced in the funding update?

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The EcoGraf Ltd (ASX: EGR) share price has surged more than 14% higher in today's trading session.

Investors are jumping for shares in the battery anode manufacturer after EcoGraf released a funding update earlier today.

At market close, the EcoGraf share price is 8.82% higher and trading at 74 cents. The EcoGraf share price was up more than 14% earlier today after hitting an intra-day high of 78 cents.

Let's take a look at what EcoGraf announced.

EcoGraf share price gets boost from funding update

Earlier today, EcoGraf provided an update on funding arrangements for the development and expansion of its battery anode material facility in Western Australia.

According to the update, the Australian Government's export credit agency is poised to lend EcoGraf US$35 million to fund the facility.

EcoGraf noted that the company will fund the initial phase of the development using its existing cash reserves.

The company's cash reserves were topped up following a $54.6 million institutional placement earlier this year.

EcoGraf also highlighted that the expansion phase would be financed through a combination of cash reserves and loan funding.

The proposed facility is slated to produce high purity battery anode material using the company's proprietary EcoGraf™ HFfree purification process.

EcoGraf has estimated a construction timeframe for the facility to be around 11 months. Following construction, the company plans to undertake a 12-month expansion program.

More on EcoGraf

EcoGraf is a diversified battery anode material company that aims to produce high purity graphite products for the lithium-ion battery market.

The company's flagship HFfree purification technology enables an environmentally responsible manufacturing process.

In addition, its facility in Western Australia EcoGraf is also in the process of developing its Epanko Graphite Project in Tanzania.

EcoGraf made headlines earlier this week after releasing results for its recycled lithium-ion battery anode.

The company reported strong results from the purification process in line with major lithium-ion battery manufacturer specifications.

Snapshot of the EcoGraf share price

The EcoGraf share price has had a volatile performance in 2021.

Shares in the battery material company opened the year at around 16.5 cents, before hitting a high of $1.07 in mid-February.

Despite the wide trading range and volatility, shares in EcoGraf are trading more than 318% higher for the year.

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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