Australian mining company Renascor Resources has secured approval for an A$185m ($118m) loan facility, under the Australian Government’s $4bn critical minerals facility.

The Export Finance Australia (EFA) confirmed that the approved loan facility will be used to advance the upstream portion of the Siviour Graphite Concentrate operation (BAM Project).

The provision of the loan facility follows in-principle finance support from EFA in March 2020, and conditional approval in February 2022.

The Loan Facility comprises an A$150m term facility and an A$35m cost overrun facility to support any unforeseen increase in capital cost through construction.

Renascor managing director David Christensen said: “We are delighted to have received confirmation that the A$185m 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.”

Drawdown of the Loan Facility will be subject to several customary conditions, required under the Critical Minerals Facility, including completion of all due diligence to the satisfaction of EFA.

EFA has been progressing with its due diligence on the upstream Graphite Concentrate operation, with aspects of due diligence completed including technical, and no fatal flaws identified.

Renascor and EFA will continue to complete the due diligence and full form documentation, and satisfaction of all conditions precedents.

BurnVoir Corporate Finance served as financial adviser and arranger of the loan facility.