Syrah Resources subsidiary Twigg expects a further loan advance of 15 million dollars before 31 October to support the Balama graphite operation in Mozambique. The US International Development Finance Corporation temporarily waived existing defaults to permit payment. The advance carries interest and a fee, while the lender retains its rights over subsequent drawdowns.
Syrah Resources, a natural graphite and battery anode materials company, announced that its subsidiary Twigg Exploration and Mining expects an additional 15 million US dollars from the US International Development Finance Corporation, DFC. The expected advance is due before 31 October. Syrah said it would support working capital and investment needed to sustain the Balama graphite operation in Mozambique.[1], [2]
DFC temporarily waived existing events of default to allow this disbursement while reserving its rights over subsequent drawdowns. The tranche carries annual interest of 6 per cent plus DFC’s cost of funds, and a 1 per cent advance fee. Syrah said the payment would take total disbursements to 83 million US dollars, with a pro forma loan balance of 93 million US dollars at 30 September.[1]
DFC is to receive warrants over about 5.4 million ordinary shares. Warrants covering another 17.5 million shares from an earlier disbursement and interest deferral remain pending issue. Full exercise would represent a 1 per cent holding in Syrah. A potential DFC nominee on the board would require approval from Australia’s Foreign Investment Review Board. Syrah is also pursuing capital-partner discussions and plans to appoint Jefferies as its sole financial adviser.[1]
