Ghana’s Minerals Income Investment Fund invests US$2million in Castle Minerals
Castle Minerals Limited, an Australian-based mining company with substantial project areas across Ghana, has received a significant boost from Ghana’s Minerals Income Investment Fund (MIIF).
In an announcement today, Castle Minerals said the MIIF has committed a US$2 million investment to support Castle’s gold exploration initiatives and the Kambale Graphite Project in northern Ghana.
This strategic investment, formalised in a non-binding term sheet, includes a US$500,000 share investment in Castle Minerals and a US$1.5 million stake in its Ghanaian subsidiary, Kambale Graphite Limited (KGL), which owns the Kambale Graphite Project. The deal is expected to advance the graphite project through to a pre-feasibility study, with plans to produce specialist graphite concentrates essential for lithium-ion battery anode manufacturing.
Castle’s Executive Chairman, Stephen Stone, expressed enthusiasm for the partnership, describing it as “transformational” for Castle’s operations in Ghana.
He noted, “The proposed transformational funding arrangement with Ghana’s sovereign wealth fund…establishes a de-risking platform for the offtake of a major proportion of graphite production and the provision of development capital.” Stone added that the support aligns with Ghana’s ambition to develop Sub-Saharan Africa’s first lithium-ion battery manufacturing hub, supported by domestic sources of critical minerals like graphite and lithium.
The investment provides MIIF with substantial privileges, including preferential rights for additional capital during Kambale’s development and an option to purchase up to 50% of the graphite produced locally. MIIF will also secure representation on Castle’s and KGL’s boards, furthering Ghana’s role in the project’s governance.
MIIF CEO Edward Nana Yaw Koranteng highlighted the importance of the investment in advancing Ghana’s critical minerals sector, stating, “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.” This investment follows MIIF’s recent alliance with Atlantic Lithium’s Ewoyaa lithium project, reflecting Ghana’s growing role in the global supply chain for electric vehicle batteries and energy storage.
The Kambale Graphite Project, strategically located near the Upper West region’s capital of Wa, boasts a high-grade 22.4 million tonne resource with 8.6% graphitic carbon, meeting specifications essential for battery-grade anode production. Recent test work confirms Kambale’s graphite can achieve the stringent purity levels required for anode material in electric vehicles.