Guess which ASX small-cap mining stock is rocketing 32% today

This mining stock is being given a major cash injection from the government.

Renascor Resources Ltd (ASX: RNU) shares have returned from a brief trading halt with a bang.

At the time of writing, the ASX small-cap mining stock is up over 32% to 11 cents.

Man in mining hat with fists raised and eyes closed looking happy and excited about the Newcrest share price

Image source: Getty Images

Why is this ASX small-cap mining stock rocketing?

Investors have been fighting to get hold of the graphite developer's shares today after it announced the receipt of major government funding.

According to the release, Export Finance Australia (EFA) has confirmed and approved a $185 million loan facility from the Australian Government's $4 billion Critical Minerals Facility.

These funds will be used to fast-track the construction of the upstream portion of the BAM Project.

The BAM Project combines the Siviour Graphite Deposit in South Australia, which is the largest reported graphite reserve outside of Africa, and a state-of-the-art processing facility in South Australia. It will manufacture Purified Spherical Graphite for the electric vehicle battery supply chain through Renascor's eco-friendly purification process.

The loan facility comprises a $150 million term facility and a $35 million cost overrun facility to support any unforeseen increase in capital cost through construction.

The ASX small-cap mining stock advised that the drawdown of the loan facility will be subject to a number of conditions. This includes the completion of all due diligence to the satisfaction of EFA.

Though, it highlights that EFA has been progressing with its due diligence on the upstream Graphite Concentrate operation. It notes that aspects of the due diligence have been completed already and no fatal flaws were identified.

'Delighted'

The ASX small-cap mining stock's managing director, David Christensen, was delighted with the news. He stated:

We are delighted to have received confirmation that the A$185 million conditionally approved loan from the Critical Mineral Facility is approved to support our strategy of fast-tracking the construction of the upstream portion of the BAM Project. Our phased development strategy provides us with an early-mover advantage by entering the market with reliable supply of natural graphite concentrates from Australia, an IRA-aligned jurisdiction.

The strategy allows us to generate early cashflows, accelerate production of graphite concentrates, continue to build valuable offtake relationships with leading anode suppliers, operate and optimise the PSG Pilot Plant and PSG product qualification, and de-risk the subsequent development of the downstream PSG processing facility. In the Siviour graphite deposit, Renascor is fortunate to be endowed with a large world class asset. The support from the Australian Government and EFA is testament to the gravity of the opportunity for Renascor, and Australia, to become a world-leading supplier of graphite into the Lithium-ion battery supply chain.

Renascor's shares remain down over 50% on a 12-month basis despite today's monster gain. Shareholders will no doubt be hoping today is a turning point.

Motley Fool contributor James Mickleboro 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.

More on Materials Shares

A woman draws on a clear screen a graph that shows a falling horizontal line.
Materials Shares

ASX lithium shares take a hit amid 20% fall in lithium price

The lithium carbonate price has fallen nearly 20% over the past month.

Read more »

Two colleagues working with company financial results.
Materials Shares

Zimplats: September 2026 quarterly earnings

Zimplats reports steady progress on major projects despite a dip in quarterly output.

Read more »

A couple cheers as they sit on their lounge looking at their laptop and reading about the rising Redbubble share price
Materials Shares

PLS Group is making a $1.9 billion bet on lithium. Should investors follow?

I take a closer look at what this expansion could mean for shareholders.

Read more »

a female steel worker wearing a high visibility vest with her protective helmet tucked under her arm smiles as she carries a clipboard in a large warehouse of steel products.
Materials Shares

BlueScope upgrades first-half FY2027 earnings guidance

BlueScope has upgraded its 1H FY2027 earnings guidance, with underlying EBIT now expected to approach $1.1 billion.

Read more »

A small child in a sandpit holds a handful of sand above his head and lets it trickle through his fingers.
Materials Shares

Why have Lynas Rare Earths crashed 42% in 6 months?

The shares are also down 7% for the year to date.

Read more »

Two business men looking at financial data, charts, and graphs on a digital tablet and a laptop computer.
Materials Shares

Alcoa posts higher net income, sets sights on AliGroup completion

Alcoa reported third quarter 2026 results, with higher net income and progress on the AliGroup acquisition.

Read more »

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
Materials Shares

Orora FY26 earnings: Cans strong, Glass under pressure

Orora's FY26 results show strength in Cans but ongoing challenges for Glass, including a substantial non-cash impairment.

Read more »

Three people at a building site discussing a plan whilst eating.
Materials Shares

Fletcher Building posts higher volumes in Q1 FY27, residential lags

Fletcher Building posted Q1 FY27 sales volume growth in several key business units, though residential activity stayed challenging.

Read more »