Sarytogan’s Tight Share Register Tightens Further Amid Strategic Placement
Sarytogan Graphite Limited secures a strategic A$3.6 million investment from Kazakh high-net-worth investor Dias Sarsenov, accelerating its Definitive Feasibility Study for a critical graphite project vital to Europe’s raw materials supply.
- A$3.6 million private placement to Dias Sarsenov for 19.99% stake
- Investment accelerates Definitive Feasibility Study (DFS) for Sarytogan Graphite Project
- Investor to join Sarytogan board upon completion
- European Bank for Reconstruction and Development offered top-up to maintain 17.3% shareholding
- Funding supports key engineering contracts and exploration activities
Strategic Investment from Kazakhstan
Sarytogan Graphite Limited has announced a significant private placement raising A$3.6 million from Kazakh investor Dias Sarsenov, who will acquire nearly 20% of the company. This injection of capital is a clear vote of confidence in Sarytogan’s flagship graphite project, located in Kazakhstan’s Karaganda region, a site designated as strategic under the European Union’s Critical Raw Materials Act.
Mr. Sarsenov’s background as majority owner of Eastcomtrans LLP, the largest rail rolling stock operator in Central Asia, brings valuable logistics expertise to the project, which is crucial for the efficient transport of raw materials to European markets.
Accelerating the Definitive Feasibility Study
The funds will primarily accelerate the Definitive Feasibility Study (DFS), a critical step towards project development, with completion targeted for mid-2026. This study will refine technical and economic parameters, enabling Sarytogan to move closer to production. The placement also enables the company to award key engineering contracts that have been tendered recently, signaling tangible progress on the ground.
Importantly, the investment comes with no restrictions on the use of funds, allowing Sarytogan to continue exploration at its promising copper projects alongside graphite development, though graphite remains the priority.
Shareholder Structure and Governance Implications
Post-placement, the investor or their nominee will join the Sarytogan board, provided their shareholding remains above 15%. This move strengthens the company’s governance with a strategic stakeholder directly involved in decision-making. The placement will result in a tightly held register, with the top three shareholders controlling over half the company’s shares.
Meanwhile, the European Bank for Reconstruction and Development (EBRD), a major shareholder holding 17.3%, has been offered the opportunity to top up its stake to maintain its position. This potential additional investment, subject to shareholder approval and regulatory clearances, could bring in up to A$755,000, further bolstering the company’s financial position.
Regulatory and Market Context
The placement is contingent on approval from Kazakhstan’s Ministry of Industry and Construction, a standard requirement under local mining regulations. Notably, the investor’s stake does not require Australian Foreign Investment Review Board approval, streamlining the process. The EBRD’s potential top-up, however, remains subject to FIRB consideration due to its multinational ownership.
Sarytogan’s graphite deposit is notable for its high-grade resource, with recent studies confirming a substantial mineral resource and ore reserve. The company has also demonstrated the ability to produce ultra-high purity graphite, positioning it well to meet growing demand for battery and industrial applications in Europe and beyond.
Bottom Line?
With strategic funding secured, Sarytogan is poised to advance its graphite project amid evolving geopolitical and supply chain dynamics.
Questions in the middle?
- Will the Kazakh government’s approval process delay the placement completion?
- How will EBRD’s decision on the top-up investment impact Sarytogan’s capital structure?
- What are the implications of the new board member’s involvement on project execution?