Sarytogan’s Funding Boost Hinges on Regulatory Approvals and Market Demand

Capital Raise to Accelerate DFS and Development

Sarytogan Graphite Limited has successfully secured $1.8 million through a placement of 20 million new shares priced at 9 cents each. This capital injection is intended to bolster the company’s ongoing Definitive Feasibility Study (DFS) and support critical project development activities at its flagship graphite deposit in Kazakhstan. The placement also includes 10 million attaching options exercisable at 15 cents, expiring in 30 months, providing investors with potential upside as the project advances.

The placement comes as a timely supplement to previously announced conditional placements totaling $5 million with the European Bank for Reconstruction and Development (EBRD) and investor Dias Sarsenov. While those larger placements await final regulatory approvals from the Kazakh Ministry of Industry and Construction, this $1.8 million raise provides immediate funding to maintain project momentum.

Strategic Importance of the Sarytogan Graphite Project

Located in the Karaganda region of Central Kazakhstan, the Sarytogan Graphite Deposit is recognised as a Strategic Project under the European Union’s Critical Raw Materials Act. This designation underscores the deposit’s world-class quality and its vital role in supplying sustainable graphite for battery and other strategic industrial applications across Europe and beyond.

The deposit boasts a substantial mineral resource of 229 million tonnes at an average graphitic carbon content of 28.9%, with an ore reserve estimated at 8.6 million tonnes grading 30% graphitic carbon. Sarytogan has already demonstrated the ability to produce high-purity graphite concentrates, including ultra-high purity material suitable for advanced battery technologies.

Use of Funds and Project Progress

Managing Director Sean Gregory highlighted that the funds raised will be directed towards advancing the DFS, including engineering, resource updates, and project design. Additionally, the company plans to produce bulk concentrates for downstream testing and customer qualification, progress downstream processing flowsheets such as purification and coating, and move forward with permitting and early works across mining and infrastructure sites.

The DFS is well advanced and on track for completion by mid-2026, positioning Sarytogan to make critical development decisions in a timely manner. The placement shares are expected to settle in early December 2025, with a general meeting planned for early 2026 to seek shareholder approval for the attaching options.

Broader Exploration and Market Context

Beyond graphite, Sarytogan is also exploring copper porphyry targets at its Baynazar and Kopa projects within the highly prospective Central Asian Orogenic Belt, indicating a diversified approach to resource development. The company’s strategic positioning in critical raw materials aligns with growing global demand for battery and industrial minerals, particularly as supply chain security and sustainability become paramount.

Overall, this placement reflects investor confidence in Sarytogan’s project fundamentals and the broader market opportunity for high-quality graphite supply. The modest discount to recent trading prices and the inclusion of options provide a balanced incentive for new investors while preserving shareholder value.