PERTH (miningweekly.com) – The US International Development Finance Corporation (DFC) has approved a $150-million conditional loan commitment to ASX-listed Syrah Resources’ subsidiary Twigg Exploration and Mining.
Syrah said on Monday that if completed, the loan would fund the capital requirements for its Balama graphite project, in Mozambique, including feasibilities for the development of the vanadium resource, expansions of the tailing storage facility, and working and sustaining capital at Balama.
“The DFC board’s approval of the DFC loan to Twigg demonstrates the importance of Balama, which is the largest integrated graphite mining and processing operation globally, to the critical minerals strategy of the US,” said Syrah MD and CEO Shaun Verner.
“Together with the US Department of Energy loan for the expansion of Syrah’s downstream business, DFC loan funding will position Syrah as a strategic partner in bolstering supply chain security for critical minerals required for the electric vehicle and energy transition in the US.”
The loan facility will have a 13-year term and interest will be fixed at applicable long-dated US Treasury rates plus a margin.
Pending US Congressional notification, the DFC will be able to issue Twigg a conditional commitment letter for the loan. The DFC loan is subject to the completion of due diligence, negotiations of detailed terms and legal documentation.