AustralianSuper increases stake on Syrah Resources $98m raise
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The news: Graphite developer Syrah Resources has announced an equity raise of around $98 million to fund the development of its Balama project in Mozambique.
The numbers: AustralianSuper, Syrah's largest shareholder with a current shareholding of approximately 17.8% in the miner, will subscribe for new shares under the placement.
The superannuation fund's shareholding in Syrah is expected to increase to no more than 31.9% with the completion of the raise.
The context: Syrah said proceeds of the raise will support Balama operations, fund operating costs for its US-based Vidalia facility, and reserve accounts under its loan with the US Department of Energy.
The raise follows news earlier this month that Syrah had signed an offtake agreement with South Korean battery electrode maker Posco Future M to supply natural graphic from its Balama mine.
What they said: Syrah managing director and CEO Shaun Verner said the raise "will enable the company to preserve optionality with respect to Balama's operating mode and support the continued ramp-up of production at Vidalia, and our path to product qualification and commercial sales".
Verner added that it will help Syrah "focus on delivering its 2024 targets with greater confidence in its financial position."
AustralianSuper senior portfolio manager for Australian equities Luke Smith said the super fund was a long-term investor in critical minerals to support the transition to electric vehicles.
"Syrah and its asset base are strategically significant on a global scale within the lithium-ion battery supply chain. AustralianSuper continues to support and provide capital to Syrah as the transition to electric vehicles continues to grow," he said.
The source: ASX announcement
