EBRD Invests A$5M in Sarytogan, Shares Issued at 166% Premium to Market

EBRD Deepens Commitment to Sarytogan Graphite

Sarytogan Graphite Limited (ASX: SGA) has announced receipt of A$2,358,790 from the European Bank for Reconstruction and Development (EBRD) as part of its Tranche 2 equity investment. This latest capital injection follows the initial tranche received in November 2024, bringing the total EBRD investment to A$5 million for 32.25 million shares at a price of A$0.16 per share. Notably, this price represents a significant premium of over 166% to the company’s recent share price, underscoring the EBRD’s confidence in the project’s value and prospects.

With this transaction, the EBRD now holds a 17.3% stake in Sarytogan, with regulatory clearance allowing it to increase its interest up to 19.99% by December 2025. This strategic positioning provides the bank with discretion to further support the company as the project advances.

Independent Peer Review Highlights Project Promise and Risks

Alongside the funding update, the EBRD commissioned an independent peer review of the Sarytogan Graphite Project’s Prefeasibility Study (PFS), conducted by RPMGlobal Asia Limited. The review concluded that no technical fatal flaws were identified, and the project holds considerable promise. However, it also flagged several risks, including some high-risk factors that could impact forecasted cash flows. RPMGlobal emphasized that these risks are typical for projects at this stage and can be mitigated through further test work, design adjustments, and progression to a Definitive Feasibility Study (DFS).

The review was preliminary, based on digital report-style information without site visits or full access to underlying data, suggesting that findings may evolve as more detailed studies are completed.

Advancing the Definitive Feasibility Study and Market Readiness

The newly received funds are earmarked to accelerate key components of the DFS, including metallurgical variability testing, infill drilling of mining pits planned for the first 20 years, environmental and social impact assessments, and infrastructure studies related to power and transportation. Additionally, efforts to prepare customer samples for marketing, led by the company’s new General Sales and Marketing Director, will be intensified.

These activities aim to refine project parameters, reduce risks, and position Sarytogan for a potential final investment decision. The company recently secured an environmental permit for mining, further de-risking the project’s development pathway.

Project Scale and Strategic Importance

The Sarytogan Graphite Deposit, located in Kazakhstan’s Karaganda region, boasts a substantial Mineral Resource of 229 million tonnes at 28.9% total graphitic carbon (TGC). The project has demonstrated the ability to produce high-purity graphite concentrates, including ultra-high purity fines and spherical purified graphite suitable for lithium-ion battery applications.

Managing Director Sean Gregory highlighted the significance of the EBRD’s investment and the peer review, noting the global strategic importance of the project and the value added by the EBRD beyond capital support.

Looking Ahead

As Sarytogan progresses towards a Definitive Feasibility Study, the company is also exploring copper porphyry opportunities in Central Asia, potentially broadening its resource portfolio. The next phases of study and investment will be critical in validating the project’s economic viability and securing further stakeholder confidence.