Sarytogan lands $2.2m cash boost to fast-track Kazakh graphite study

In a timely boost for its world-class graphite project, Sarytogan Graphite has received advice that it will soon land up to US$2.2 (A$3.32) million in funding from Kazakhstan businessman Dias Sarsenov’s Steinhardt Holdings NV.

The cash will be used to maintain momentum on the definitive feasibility study (DFS) for the company’s monster graphite project in central Kazakhstan while awaiting final share issue approvals from the Kazakhstan government.

Kazakhstan businessman Dias Sarsenov, whose family controls transport giant Eastcomtrans LLP, has advanced up to US$2.2 million to Sarytogan Graphite

Sarenov’s family is a majority shareholder of Eastcomtrans LLP, the largest owner and operator of rail rolling stock in Kazakhstan and Central Asia.

The interim funding package forms part of a previously agreed A$3.6 million equity placement in August, which, once completed, will hand Sarenov’s group a 19.99 per cent stake in Sarytogan.

Valued at 8 cents a share for 45.2 million shares, the company says the proposal has already cleared National Security Committee approval from Kazakhstan’s Ministry of Industry and Construction, with the share issue now just around the corner.

An initial A$180,000 deposit has already made its way into Sarytogan’s coffers.

To keep its definitive feasibility study charging towards a mid-2026 finish line, Sarytogan has secured some timely breathing space from Steinhardt. The investor has agreed to an interim funding deal, split into two tranches, to unlock key engineering contracts and keep the project momentum rolling. The first US$1 million is being released straight away, with a second tranche of up to US$1.2 million available on request.

The funding is interest-free and will offset against the equity investment once all approvals are finalised. If for any reason the MIC approvals are not granted, Sarytogan will repay the funds with a modest five per cent annual interest - a structure that appears to underscore both Sarytogan and Sarenov’s confidence in the project and the regulatory outcome.

Sitting 190 kilometres from the industrial city of Karaganda in eastern Kazakhstan, the project sits squarely in Europe’s sights. Almost two years ago, it was designated as being of strategic importance under the European Union’s Critical Raw Materials Act. The European Bank of Reconstruction and Development (EBRD) then invested $5 million into Sarytogan for 17.3 per cent of the company at 16c.

Sarytogan already hosts a massive mineral resource of 229 million tonnes grading 28.9 per cent total graphitic carbon (TGC) for 66 million tonnes of contained graphite, placing it among the world’s larger undeveloped deposits.

Recent test work confirmed the project’s metallurgical credentials, with flotation concentrates grading above 90 per cent carbon and further purification achieving an extraordinary 99.9992 per cent carbon purity, or “five nines”, without chemical pre-treatment.

A 2024 pre-feasibility study outlined a staged development plan designed to limit upfront capital costs while allowing production growth alongside market penetration. That study also delivered a probable ore reserve of 8.6 million tonnes at 30 per cent TGC for 2.16 million tonnes of contained graphite concentrate.

Sarytogan plans to market three key product streams: microcrystalline graphite for traditional industrial uses, ultra-high-purity fines for advanced technologies and spherical purified graphite for lithium-ion battery anodes.

Global hunger for critical metals is showing no signs of slowing, as Western nations scramble to secure supply chains in the wake of China’s tightening export controls over the past year.

Backed by influential investors, record-setting purity results and a strategic European designation, Sarytogan holds a powerful trifecta that could see it emerge as a cornerstone supplier of ultra-clean graphite to global battery markets.

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