Sarytogan Secures US$2.2M Loan to Fast-Track Feasibility Study

Strategic Financing Boost

Sarytogan Graphite Limited (ASX – SGA) has taken a significant step forward in advancing its flagship graphite project in Kazakhstan by securing a US$2.2 million loan advance from Steinhardt Holding NV, a related party to key investor Dias Sarenov. This loan forms part of a previously agreed A$3.6 million equity placement, designed to underpin the company’s ongoing development activities.

The loan is structured in two tranches, with the first US$1 million already advanced and the second tranche of up to US$1.2 million available upon request. Importantly, the loan will convert into equity once the company obtains final approvals from Kazakhstan’s Ministry of Industry and Construction (MIC), with no interest payable during this period. Should regulatory approvals not be granted, the loan will be repaid with a modest 5% annual interest.

Accelerating the Definitive Feasibility Study

This injection of capital is earmarked to expedite the award of critical engineering contracts for the Definitive Feasibility Study (DFS), a key milestone in the project’s development timeline. The DFS aims for completion by mid-2026, setting the stage for potential project financing and construction decisions.

The Sarytogan Graphite Deposit, located in Kazakhstan’s Karaganda region, holds a substantial mineral resource estimated at 229 million tonnes at nearly 29% graphitic carbon content. The project’s classification as a Strategic Project under the European Union’s Critical Raw Materials Act underscores its importance in supplying high-purity graphite essential for battery technologies and other strategic applications.

A World-Class Graphite Asset

Sarytogan has demonstrated the ability to produce graphite concentrates exceeding 90% purity, with recent advancements achieving ultra-high purity levels of 99.9992% carbon through thermal purification. This positions the project well to supply various graphite products, including microcrystalline graphite for traditional uses, ultra-high purity fines for advanced industrial applications, and spherical purified graphite for lithium-ion batteries.

The company’s recent Pre-Feasibility Study outlined a phased development approach to balance market entry with capital efficiency, supported by a probable ore reserve of 8.6 million tonnes at 30% graphitic carbon. Additionally, Sarytogan is exploring copper porphyry opportunities nearby, further diversifying its resource portfolio.

Regulatory and Market Outlook

While the loan advance provides immediate financial flexibility, the ultimate equity conversion hinges on regulatory approvals from Kazakhstan’s MIC, which have passed initial national security scrutiny. The company remains optimistic about securing these final approvals imminently, which will solidify the investor’s equity stake and support ongoing project momentum.

Given the strategic importance of critical raw materials in global supply chains, Sarytogan’s progress is likely to attract continued attention from investors and policymakers alike. The company’s ability to navigate regulatory processes and deliver on its DFS timeline will be critical to unlocking the project’s full value.