The Dutch-based Royal IHC has pledged A$1 million to undertake early project works, including metallurgical testing and detailed engineering and design work, and will work with Brisbane-based engineering firm Wave International to finalise completion of the Siviour definitive feasibility study.
Royal IHC will also assist Renascor to obtain project finance necessary to fund the development of Siviour in return for becoming the EPC contractor on any decision to mine.
If the Renascor does not obtain financing for Siviour within three months, Royal IHC will have the option of converting its contribution into Renascor shares.
The Eyre Peninsula project is claimed to be among the largest reported graphite deposits in the world, with a resource estimate of 80.6 million tonnes at 7.9% total graphitic carbon for 6.4Mt of contained graphite and a probable reserve of 45.2Mt at 7.9% for 3.6Mt of graphite.
Last week, it producing high-grade graphite concentrate in China to support its definitive feasibility work, using samples sent for treatment at an existing graphite mine to create a product with 95% TGC.
Four other independent laboratories located in Australia, Germany and Canada had previously replicated the ore grades and recovery obtained by Renascor in its initial PFS, and the company says Siviour looks to be cementing its claims to being economically viable.
The pilot program is expected to finish this month.
Renascor, which has around $6 million in cash, has already lodged an application for a mining lease, just two years after it secured the project.
Infill drilling was completed last month, and suggested potential for extensions outside of the current resource.
Shares in Renascor were up 10% in morning trade to 2.1c, valuing the company at $20.2 million.