EcoGraf Advances Epanko Project with $105M Loan Mandate and $17.6M Cash

Upstream Momentum: Epanko Project Financing and Approvals

EcoGraf Limited (ASX: EGR) has taken a major step forward in its Epanko Graphite Project with the mandate of KfW IPEX-Bank to arrange a senior debt facility of up to US$105 million under the German UFK loan program. This financing, backed by the Federal Republic of Germany, is designed to support critical mineral projects that supply German industry, offering EcoGraf long-tenor, flexible funding subject to due diligence and approvals.

Complementing this financial progress, the Tanzanian government is finalising internal approvals for the Special Mining Licence (SML), anticipated to be granted within the current quarter. This licence will underpin a multi-generational operation with plans for staged expansion aligned to growing global demand for battery-grade natural graphite.

Environmental and Social Governance at the Forefront

EcoGraf continues to demonstrate commitment to high environmental and social standards, aligning its tailings storage and water dam designs with the Global Industry Standard on Tailings Management (GISTM). Updated environmental and social management plans comply with International Finance Corporation (IFC) Performance Standards and the Equator Principles, critical for securing international financing and reflecting best practice ESG governance.

The company is also advancing its Resettlement Action Plan in collaboration with local communities, ensuring sustainable and socially responsible development at Epanko.

Midstream and Downstream Developments: Facility Siting and Technology Progress

In Tanzania, EcoGraf has selected a preferred site near Ifakara for its Mechanical Shaping Facility, which will convert natural flake graphite into spherical graphite, a key precursor for battery anode materials. The location offers significant clean power and transport advantages, supporting the company’s sustainability goals.

Downstream, the EcoGraf HFfree™ purification technology continues to gain traction. The Product Qualification Facility is operational and progressing through campaign phases, validating the process for commercial scale. Patent applications have advanced in multiple jurisdictions, including a granted US patent and accepted Australian filings, reinforcing EcoGraf’s intellectual property moat.

Corporate and Financial Position

EcoGraf strengthened its leadership team with the appointment of Clayton Hewitson as General Manager – Project Development, bringing extensive experience in major projects across Australia and Africa. Natalie Teo joined as Joint Company Secretary, supporting corporate governance and compliance.

Financially, the company closed the quarter with $17.6 million in cash and equivalents, following $2.7 million in exploration and evaluation expenditure primarily focused on Epanko. A $1.5 million R&D tax refund was received post-quarter, providing additional liquidity to support ongoing development activities.

Strategic Outlook

EcoGraf’s vertically integrated approach, from mining through mechanical shaping to HFfree purification, positions it well to meet surging demand for sustainable battery anode materials across Asia, Europe, and North America. The company’s engagement with Tanzanian and European stakeholders, including positive discussions with the EU Commission, underscores its strategic intent to embed itself within global battery supply chains.