The European Bank for Reconstruction and Development (EBRD) is looking more closely at junior miners, setting aside €150 million ($249.6 million) to invest in promising companies.
The EBRD is particularly interested in junior miners active in regions like central Europe, the Baltics and Northern Africa.
The investment is part of the Junior Mining Programme (JUMP), which received formal approval in late July 2024.
The program is aimed at supporting exploration or early development stage companies that traditionally face significant challenges in securing financing due to the high risks.
Investor relations firm Austlinx says JUMP is particularly important in the context of the global transition to green energy and the growing demand for critical minerals.
The program is aimed at bridging the financing gap in the junior mining sector, which Austlinx says is crucial for discovering and developing the raw materials needed for renewable energy technologies, electric vehicles, and other components of the green economy.
Sarytogan Graphite (ASX:SGA) and European Metals Holdings (ASX:EMH) are two companies that have received recent funding from the EBRD.
The EBRD invested close to $3.3 million for a 17.36% stake in Sarytogan and €6 million into European Metals.
Sarytogan Graphite this week released the results of a Pre-Feasibility Study for its namesake graphite project in central Kazakhstan.
The study estimates the staged development of the Sarytogan Graphite Project could generate an earnings before interest, taxes, depreciation and amortisation margin of up to 67% and a pre-tax net present value of up to US$518 million ($782.3 million).
Managing Director Sean Gregory says the project is now a “very serious contender” to play an important role in meeting the world’s energy storage needs.
“The physical attributes of the giant and exceptionally high-grade Sarytogan Graphite Deposit have shone through in the PFS which envisages low costs and high margins, even at the conservative project sizing selected to minimise risk,” he says.
“Coupled with the recent planned investment by the European Bank for Reconstruction and Development strengthening of our balance sheet, Sarytogan is in a strong position to drive the project forward with early works on the DFS already underway.”
Austlinx says EBRD’s investment in Sarytogan is a strategic move, aligning with the global push towards electrification and the need for secure, sustainable sources of battery materials.
European Metals, meanwhile, is working through a Definitive Feasibility Study for its Cinovec Lithium Project in the Czech Republic.