Ghana's Minerals Income Investment Fund (MIIF) has given Castle Minerals Limited, an Australian mining firm with large project areas throughout Ghana, a big boost.
Castle Minerals announced today that the MIIF has agreed to invest US$2 million to support the Kambale Graphite Project in northern Ghana and Castle's gold exploration activities.
Castle Minerals announced today that the MIIF has agreed to invest US$2 million to support the Kambale Graphite Project in northern Ghana and Castle's gold exploration activities.
A US$1.5 million holding in Castle Minerals' Ghanaian subsidiary, Kambale Graphite Limited (KGL), which holds the Kambale Graphite Project, and a US$500,000 share investment in Castle Minerals are part of this strategic transaction, which is outlined in a non-binding term sheet. With ambitions to create specialized graphite concentrates necessary for the production of lithium-ion battery anodes, the agreement is anticipated to move the graphite project forward to a pre-feasibility study.
Stephen Stone, the executive chairman of Castle, was excited about the collaboration and called it "transformational" for Castle's operations in
Stephen Stone, the executive chairman of Castle, was excited about the collaboration and called it "transformational" for Castle's operations in
He said, "The proposed transformational funding arrangement with Ghana's sovereign wealth fund...creates a de-risking platform for the provision of development capital and the offtake of a significant portion of graphite production." According to Stone, the assistance supports Ghana's goal of becoming the first hub for the production of lithium-ion batteries in Sub-Saharan Africa, which will be aided by local supplies of vital minerals like lithium and graphite.He said, "The proposed transformational funding arrangement with Ghana's sovereign wealth fund...creates a de-risking platform for the provision of development capital and the offtake of a significant portion of graphite production." According to Stone, the assistance supports Ghana's goal of becoming the first hub for the production of lithium-ion batteries in Sub-Saharan Africa, which will be aided by local supplies of vital minerals like lithium and graphite.
The investment grants MIIF significant benefits, such as the possibility to buy up to 50% of the locally produced graphite and preferential rights for additional funding during Kambale's development. In order to strengthen Ghana's position in the project's governance, MIIF will also obtain representation on the boards of Castle and KGL. "The Minerals Income Investment Fund of Ghana...fully aligns with the Government of Ghana's critical minerals policy and its aspiration to establish Sub-Sahara's first lithium-ion battery manufacturing facility," said MIIF CEO Edward Nana Yaw Koranteng, highlighting the significance of the investment in advancing Ghana's critical minerals sector. Following MIIF's recent partnership with Atlantic Lithium's Ewoyaa lithium project, this investment reflects Ghana's expanding position in the global supply chain for energy storage and batteries for electric vehicles.
The Kambale Graphite Project, which is ideally situated close to Wa, the capital of the Upper West, has a high-grade 22.4 million tonne resource that contains 8.6% graphitic carbon, which satisfies requirements necessary for the manufacturing of battery-grade anodes. Kambale's graphite can meet the strict purity standards needed for anode material in electric vehicles, according to recent testing.
