Syrah Resources jumps on US funding deal for Balama project
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The news: Graphite producer Syrah Resources has secured a binding loan agreement from the US International Development Finance Corporation for its Balama graphite project in Mozambique, sending its shares higher.
The numbers: The USD150 million ($227 million) DFC loan will fund capital requirements at Balama, with an initial disbursement of USD73 million to be completed in November, Syrah said. Its current applicable cost of funding is estimated at 4.61%.
Shares in Syrah Resources jumped more than 12% to 32 cents on the news.
The context: Syrah said the execution of the loan agreement follows a conditional commitment by the DFC last year. The loan is aligned with the US government’s commitment to support development in Africa and also supports the G7’s Parnership for Global Infrastructure and Investment.
Syrah currently supplies the Balama graphite to US firms Graphex Group and Westwater Resources, along with its own Vidalia active anode facility in the US. Earlier this year it secured a supply deal with South Korean battery electrode maker Posco Future M. The new approval comes after China imposed export controls on graphite, a key electric vehicle battery ingredient, in December 2023.
The source: ASX announcement
