EcoGraf (ASX:EGR; FSE:FMK) Shares Soar on Special Licence Grant for Epanko Project

Highlights

• The Government of Tanzania has granted a 25-year life-of-mine Special Mining Licence (SML) for the Epanko Graphite Project.
• SML733/2025 is a key regulatory milestone for securing financing for the project.
• The mining area has expanded from 9.6 km² to 18.9 km², covering a 5.5 km strike length, with the orebody averaging 200m in width.
• EcoGraf plans to build a Midstream Development Facility to produce Spherical Graphite (SPG), in alignment with Tanzania’s ‘2030 Value-Addition’ strategy.
• EcoGraf’s shares surged over 35%, reaching 15.4 cents per share on 4 March 2025.

Shares of EcoGraf Limited (ASX:EGR; FSE:FMK) surged over 35%, reaching 15.4 cents per share on 4 March 2025, following the company’s announcement of  a significant milestone in the development of its Epanko Graphite Project in Tanzania.

EcoGraf confirmed that the Government of Tanzania granted a life-of-mine Special Mining Licence (SML) for the Epanko Project on 3 March 2025, valid for 25 years. This decision follows a comprehensive evaluation of the project's development after the signing of the Epanko Framework Agreement. The SML covers the project’s updated mineral resource of 290.8Mt at 7.2% TGC, making Epanko the largest development-ready graphite mineral resource in Africa.

The mining area has expanded to 18.9km² from 9.6km², covering a continuous 5.5km strike length of the Epanko graphite deposit. The orebody averages a width of 200m.

The grant of SML733/2025 provides regulatory certainty and is a critical permit for securing financing for Stage 1 development of the project, which includes a 73,000 tonnes per annum (tpa) graphite processing plant.

Financing and Expansion Plans

To fund the construction of the plant, EcoGraf has mandated KfW IPEX-Bank to provide advisory, structuring, and arranging services to secure import credit cover and a senior debt facility of up to US$105 million.

SML733/2025 will enable a long-term, multi-generational operation with an increased production capacity. Moreover, the company plans a staged expansion to meet production targets and address the increasing global demand for natural graphite anode material, which is essential for clean energy storage and electric mobility markets.

Advancing Tanzania’s Graphite Value-Addition Strategy

At the recent Tanzanian Mining and Investment Conference in Dar es Salaam, EcoGraf outlined plans for a Midstream Development Facility in Tanzania. This facility will process Epanko’s natural flake graphite into Spherical Graphite (SPG) through a proposed Mechanical Shaping Facility, supporting the Tanzanian Ministry of Minerals’ ‘2030 Value-Addition’ strategy.

The Midstream Development is expected to be the first graphite value-addition project in Tanzania and one of the first in Africa. The project has received  significant support from the EU Commission, following key meetings in Europe, Tanzania, and South Africa.