EQS News: EcoGraf: Epanko Debt Financing Update | 19.08.24

Epanko debt financing update

Positive preliminary assessment decision UFK

EcoGraf Limited (ASX: EGR; FSE: FMK; ECGFF) is pleased to report that it has received a notification regarding the preliminary examination of the Interministerial Committee of the German Government (IMC) regarding the import coverage for the proposed loan of up to US$105 million for the development of the Epanko Graphite Project (Epanko or the Project).

HIGHLIGHTS:

• Major milestone for Epanko debt financing program
• Activities in progress to support the application for UFK coverage

Following consideration of the detailed application submitted by EcoGraf, the IMC has issued a non-binding confirmation that the Epanko Graphite Project is in principle eligible for cover under the Federal Republic of Germany’s Untied Loan Guarantee Scheme (UFK) and that an expert opinion on the project and the proposed financing arrangements is now required in order to obtain preliminary approval for a binding offer of cover.

General Manager Andrew Spinks commented: “The positive outcome of the preliminary assessment is a significant milestone in our Epanko financing program and our team is focused on completing the remaining project planning activities in support of the submission for preliminary approval for UFK hedging, positioning our world-class Epanko Graphite project for development.“.

EcoGraf has commissioned KfW IPEX-Bank to provide advisory, structuring and brokerage services
to obtain the UFK coverage and a senior debt facility (UFK tranche) of up to
up to US$105 million for the construction of Epanko. Subject to satisfactory due diligence, credit approvals and UFK coverage, KfW IPEX-Bank may act as sole financier of the UFK tranche.

The UFK program is offered by the Federal Republic of Germany through the credit insurer Euler Hermes
to stimulate the development of key projects that can provide a long-term supply of critical minerals for German industry. Subject to compliance with defined due diligence criteria, the program may provide long-term loan coverage on behalf of the Federal Republic of Germany, providing Epanko with increased financial flexibility during the start-up and operational phases.

A key requirement of the UFK program is the promotion of the highest environmental and social construction and operational standards. Epanko’s social and environmental planning programs are developed to comply with the Equator Principles, a globally recognized risk management framework adopted by leading financial institutions for assessing and managing social and environmental risks in new developments.

Achieving this standard and meeting the International Finance Corporation’s performance requirements and the World Bank Group’s Environmental, Health and Safety guidelines are critical to securing international financial support for the new development. It also reflects EcoGraf’s commitment to ensuring the highest environmental, social and governance standards for construction and operations.

This announcement has been authorised for publication by Andrew Spinks, Managing Director.

For further information please contact:

INVESTORS

Andrew Spinks

Director

T: +61 8 6424 9002

About EcoGraf

EcoGraf is building a vertically integrated battery anode materials business to produce high purity graphite products for the lithium-ion battery and advanced manufacturing markets. More than US$30 million has been invested to date to create a highly attractive graphite mining and mineral processing business.

In Tanzania, the Company is developing the TanzGraphite natural flake graphite business, starting with the Epanko Graphite Project, to provide a long-term scalable supply of raw material for EcoGraf™ battery anode material processing facilities, along with high-value large flake graphite products for specialist industrial applications.

Using the environmentally friendly EcoGraf HFfree™ purification technology, the company will upgrade flake graphite to produce high-quality battery anode material with 99.95% C, meeting the needs of electric vehicle, battery and anodes manufacturers in Asia, Europe and North America as the world transitions to clean, renewable energy.

Battery recycling is critical to improving supply chain sustainability. The company’s successful application of the EcoGraf™ purification process to recycle battery anode material provides the company with a unique ability to help customers reduce carbon emissions.₂ -emissions and lower battery costs.

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