Renascor Resources share price tumbles again despite licensing deal

Renascor Resources has announced a licensing agreement for its downstream processing.

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The Renascor Resources Ltd (ASX: RNU) share price is down 3.6% today despite another positive update.

The shares are currently sitting at 14 cents apiece.

They took a 23% dive yesterday despite the ASX mineral explorer announcing "compelling economics" for its proposed graphite project.

Renascor Resources owns the Siviour Graphite Deposit in South Australia. This is the second-largest graphite reserve in the world.

The company wants to build a battery anode material (BAM) project at the site. This will incorporate a vertically integrated graphite mine and downstream processing operation.

Today, Renascor announced a licensing deal with German battery mineral consultancy group Dorfner ANZAPLAN GmbH.

The agreement will allow Renascor to use Dorfner's eco-friendly purification process for its downstream processing plant at Siviour.

The process eliminates the need to use hydrofluoric acid in the production of purified spherical graphite (PSG). This type of graphite is used in lithium-ion batteries.

Trials designed to increase efficiencies resulted in the development of the unique purification process.

These efficiencies include reduced leaching steps and less water consumption than traditional methods.

The trials resulted in PSG that met or exceeded lithium battery anode purity specifications.

The results came in at up to 99.99% carbon compared to the anode industry standard of 99.95%.

As we reported yesterday, Renascor has just released the study results for its proposed project.

The study incorporates the new purification process into the engineering design for the PSG facility.

According to the study, Renascor will be able to produce 150,000 tonnes per annum (tpa) of graphite concentrate over a 40-year life of mine and 100,000 tpa of PSG.

Miner looking at a tablet.

Image source: Getty Images

Renascor Resources share price snapshot

The Renascor Resources share price has fallen 35% over the past 12 months.

Motley Fool contributor Bronwyn Allen 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 Scott Phillips.

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