Image source: Getty Images
Key points
- The Renascor share price is up 19% in lunchtime trade
- The company has received an $185 million loan to develop its South Australian graphite project
- Its SA site is the world's "second largest proven resource"
The Renascor Resources Ltd (ASX: RNU) share price is flying 19% higher today off the back of an already green month.
The price jump comes amid the energy company receiving the green light for a federal government loan for its South Australian graphite site. Renascor touts the project as "the largest reported graphite reserve outside Africa".
At the time of writing, the energy company's shares are trading at 28.5 cents each, up 18.75% after hitting their all-time high of 31 cents earlier in the session.
Let's take a look at the company's latest news.
What did the federal government approve?
This morning, Renascor announced it had received a $185 million government loan to develop its Siviour Graphite Project on SA's Eyre Peninsula (around 120km northeast of Port Lincoln).
This loan will assist the company in achieving its goal of becoming "a world leader in the sustainable production of 100% Australian-made graphite product for use in the lithium-ion batteries fuelling the electric vehicle revolution".
The loan will help Renascor combine its SA site with an "eco-friendly" purification processing facility to produce purified spherical graphite.
The conditional loan comes under the umbrella of the federal government's $2 billion Critical Minerals facility and will be administered by Export Finance Australia (EFA).
The loan facility, established last year, assists projects to "secure the vital supplies of resources needed to drive the new energy economy and support the resources jobs of the future", Renascor explained.
The government had previously granted the venture "major project status". It will involve an estimated $204 million in capital expenditure.
Comment from management
Renascor managing director David Christensen said:
The Siviour Graphite Project represents an important opportunity for Australia, and South Australia in particular, to develop a world class, globally competitive downstream processing capability in a critical mineral that is fundamental to the development of the electric vehicle revolution.
The support from the Australian Government and EFA is a significant and tangible endorsement of this opportunity and Renascor's ambition to become a world-leading supplier of Purified Spherical Graphite.
We look forward to working closely with EFA to satisfy the conditions of approval and to conclude all required facility documentation.
Renascor share price snapshot
Over the last 12 months, the Renascor share price has skyrocketed a whopping 840%.
The company's share price now eclipses its previous 52-week high of 28 cents last month. This compares to its lowest point of 3 cents exactly a year ago.
Renascor has a market capitalisation of $530 million with approximately 1.89 billion shares issued.
