Comet Resources is set to become a key player in the lucrative downstream processing of lithium-ion battery anode material after vending-out its Springdale graphite project to International Graphite - an Australian manufacturer of high-value graphite products for supply to global markets. International Graphite plans to list on the ASX early next year with Comet in line to own a 25 per cent stake in the graphite manufacturer after the listing.
Under an initial public offering, or “IPO” for its proposed listing on the bourse, International Graphite will seek to raise between $6 million and $8m at a price of $0.20 per share. Comet is due to receive 40 million shares as part of the IPO, valuing its 25 per cent interest at $8m.
The deal will enable Comet to gain direct exposure to a vertically integrated high-technology graphite business focused on the production of micronised, battery anode material for the booming lithium-ion battery industry.
Notably, the proposed operation also aims to churn out a variety of other industrial graphite products, presenting International Graphite - and Comet - with an opportunity to generate multiple income streams from the venture.
Springdale takes in a 15.6 million tonne resource going 6 per cent total graphitic carbon, or “TGC”, including a high-grade 2.6 million tonnes at a booming 17.5 per cent TGC.
The deposit lies less than 150 kilometres by road from Esperance in the south of Western Australia, strategically positioned to source graphite for International Graphite’s manufacturing facility in Collie, located 213km south of Perth.
As evidenced by recent test work, the high-quality fine graphite at Springdale also makes it uniquely suited for use in the burgeoning battery anode market being spurred on by electric vehicle uptake around the world.
Recent testing of a bulk sample of graphite concentrate from the deposit confirmed Springdale graphite met industry specifications for battery anode material, with purification up to 99.99 per cent graphite content achieved.
Comet Resources Managing Director, Matthew O’Kane said:“Comet’s participation in International Graphite’s vertically integrated graphite business, located in the tier one minerals jurisdiction of Western Australia, will provide the opportunity to not only unlock the value of Springdale as a mine, but to also participate in the high-technology downstream business of manufacturing high value micronised and Lithium-Ion battery anode material products. International Graphite’s business plan has already received endorsement from the WA Government by way of a $2M grant, and we believe the addition of Comet’s Springdale Graphite Project will also be very well received.”
International Graphite Chairman, Phil Hearse added:“International Graphite’s acquisition of the Springdale resource will cement our vision as WA’s first fully integrated graphite producer. Control of this high quality resource will close the supply loop ensuring we have consistent feed for our new downstream processing facility, at Collie, and ‘chain of custody’ oversight of our product, from mine to customer. This will be critical to building WA’s reputation as an ethical and reliable graphite supplier to the massive global battery market and strengthen Australia’s sovereign capability in the critical minerals space.”
International Graphite has already run the ruler over its downstream processing facility in Collie after completing a three year long definitive feasibility study on the proposed venture.
It plans to undertake staged development of the project with a medium-term strategy seeking to produce coated high purity spherical graphite for lithium-ion battery anode production.
Other products to be developed include high purity micronised graphite for use as an additive in lithium battery cathodes, alkaline and carbon zinc batteries, fuel cells and specialist lubricants.
Plans also include the manufacture of graphite foil for use in mobile phones and computer batteries, specialist sealants and gaskets.
Other opportunities include the production of expandable graphite, which is a soft and heat resistant compound used in building materials and in fire retardant insulation.
International Graphite appears to be ticking boxes in its efforts to bring the project to life with an ultra-high temperature furnace for graphite purification R&D already on site. A pilot spheroidising plant is also due to arrive at Collie soon. The company says it now intends to place an order for the operation’s production micronising line.
The project is also expected to provide a major contribution to an emerging renewables energy hub being developed in the Collie region.
International Graphite appears on course to becoming one of Australia’s first manufacturers of high-value graphite products for supply to global markets. With its 25 per cent stake in the venture, Comet could carve out its own slice of the lucrative green-technology revolution being waged around the world.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Matt Birney
