Sow Good Inc., a Nasdaq-listed freeze-dried candy and snack company, has signed a definitive agreement to acquire the Nachu Graphite Project in Tanzania in an all-stock deal valued at approximately $107 million. If it closes, the transaction would pivot the company into critical minerals and battery anode materials.
The Nachu Project is an advanced-stage open-pit graphite development located in the Ruangwa District of southern Tanzania, about 220 km by road from the deep-water port of Mtwara. According to Ryzon’s JORC Code 2012 studies—which Sow Good has not independently verified—the project hosts a mineral resource of 174 million tonnes at 5.4% total graphitic carbon (TGC) and an ore reserve of 76 million tonnes at 5.2% TGC. Designed processing capacity is 5 million tonnes per year of run-of-mine ore, yielding approximately 236,000 tonnes per year of graphite concentrate at 98.5–99.0% TGC purity via flotation alone, without chemical purification. Reported mine life is 15.5 years.
The project holds full permits and a Special Economic Zone license in Tanzania but has not commenced construction or production. Ryzon has disclosed a binding offtake agreement with an unnamed US Tier-1 EV and ESS manufacturer; Sow Good says it has not independently verified the terms or current status of that agreement and that re-confirming it will be a priority post-close.
The deal is paid entirely in Sow Good shares, based on a 10-day VWAP of US$0.3209. Closing requires Sow Good shareholder approval, Tanzanian regulatory clearances and other conditions. The company says there is no assurance the transaction completes.
The supply chain backdrop is real. China controls approximately 70% of global natural flake graphite production and more than 95% of spherical and coated graphite anode processing—concentration that IRA Foreign Entity of Concern provisions and the EU Critical Raw Materials Act are specifically designed to reduce. Nachu is positioned as a non-Chinese African source of battery-grade graphite at scale, though it remains years from first production.
“The global battery supply chain is at an inflection point: Western governments and automakers are actively seeking non-Chinese sources of battery-grade graphite, and we believe Nachu is uniquely positioned to meet that demand,” said Sam Goldberg, CEO of Sow Good.
Source: Sow Good Inc.
