The Renascor Resources Ltd (ASX: RNU) share price is on fire after receiving a favourable outcome from the federal government.
At the time of writing, Renascor shares are up a massive 26.92% to 16.5 cents. This means that its shares are now trading at a 6-month high.
Renascor on track for battery anode material operation
The Renascor share price is firmly in the green today after it updated investors with positive news.
Renascor advised it has received a significant boost for its planned Siviour Battery Anode Material operation (the Siviour Project) in South Australia.
According to its release, the Australian federal government has granted Renascor with Major Project Status (MPS) for the Siviour Project. The award follows the recognition of the strategic importance of the Siviour Project in contributing to Australia's Critical Mineral Strategy.
The Siviour Project's vertically integrated operation manufactures purified spherical graphite through the company's eco-friendly, HF-free2 purification process. The graphite deposit located in Siviour is reported to be the largest graphite reserve outside of Africa.
Renascor's aim is to become a leading supplier of low-cost purified spherical graphite for lithium-ion battery anode manufacturers worldwide.
The award will provide an array of benefits for the company's Siviour Project. This includes Australian Government approvals, project support and coordination with state government approvals.
Renascor managing director, David Christensen commented:
The award of Major Project Status is an important recognition of the strategic importance of Siviour as both a world-class mineral resource and its potential to add further value through a downstream operation in Australia to produce a globally competitive, 100% Australian-made refined graphite product on globally competitive terms for direct sale to the lithium-ion battery supply chain.
The Major Project Status designation will assist us as we progress Siviour through the final development phases and will offer an important endorsement of the Project as we enter binding offtake negotiations and embark on project financing.
About the Renascor share price
Over the last 12 months, the Renascor share price has soared over 860%, with year-to-date up an astonishing 1,100%. The company's shares have gone strength-to-strength as the lithium sector heats up.
On valuation grounds, Renascor presides a market capitalisation of roughly $272 million, with approximately 1.9 billion shares on its registry.
