Comet Resources Ltd (Comet or the Company) (ASX:CRL) is pleased to announce that it has reached an agreement with International Graphite Ltd (International Graphite) to form a vertically integrated high-technology graphite business located in Western Australia to focus on the production of micronised, battery anode material and other products for lithium-ion batteries. Comet will gain its stake in the venture via the vend-in of its Springdale Graphite Project into International Graphite (the Transaction). Springdale is uniquely suited as a feedstock source for International Graphite's facility in Collie, Western Australia, not only due to its location but also due to the amenability of its graphite to be processed into high value products, such as battery anode material, based on recent test work. International Graphite plans to complete an IPO and seek admission to the ASX to join the relatively limited group of publicly listed lithium-ion battery anode material graphite companies.

Highlights

  • Comet to gain participation in high-technology, vertically integrated industrial and battery anode graphite product company, International Graphite via the vend-in of its Springdale GraphiteProject
  • Springdale uniquely suited in both location and material quality to provide raw material feedstock to International Graphite's high-value micronised and lithium-Ion battery anode material and otherproducts
  • Proposed transaction initially values Springdale Graphite Project at $8M in International Graphiteshares
  • International Graphite to seek a listing on theASX
  • International Graphite has commenced Stage 1 of its advanced downstream graphite product manufacturing and R&D facility in Collie,WA
  • International Graphite's technology has been recognised by and received strong support from the WA Government, with a recent award of a $2M grant to contributeto the development of the Colliefacility
Managing Director, Matthew O'Kane commented:
"Comet's participation in International Graphite's vertically integrated graphite business, located in the tier one minerals jurisdiction of Western Australia, will provide the opportunity to not only unlock the value of Springdale as a mine, but to also participate in the high-technology downstream business of manufacturing high value micronised and Lithium-Ion battery anode material products. International Graphite's business plan has already received endorsement from the WA Government by way of a $2M grant, and we believe the addition of Comet's Springdale Graphite Project will also be very well received. International Graphite's leadership team brings decades of experience in metallurgy and project development. We are confident in their ability to capture opportunities in the rapidly growing high-technology downstream graphite products business."

Read the full report here.
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