Australian mining company Syrah announced on Wednesday that it has successfully secured financing totaling $64.73 million (€59.2 million) for its graphite mine operations in Balama, northern Mozambique. This financing includes a rights offering aimed at funding the Vidalia project in the United States.
Syrah revealed that its largest shareholder, AustralianSuper, has agreed to convert bonds issued in June 2019 and December 2023 into new shares in the mining company.
The company has seen an uptick in production, reaching 41,000 tonnes of natural graphite in the first quarter of this year compared to 35,000 tonnes in the previous quarter. Sales have also increased from 28,000 to 30,000 tonnes.
Furthermore, Syrah is progressing with the construction of the Vidalia battery material factory in the US, which will be supplied with ore from Mozambique.
The proceeds from the capital raising will be utilized to support the acceleration and progress of the Vidalia project.
In addition, Syrah expects to receive US funding of $150 million (€137 million) for its subsidiary Twigg, operating the Balama graphite mine in Mozambique.
This financing, facilitated through the US government’s financing and development agency, aims to fund the capital requirements of local graphite operations and enable feasibility studies for future expansions.
The US government’s support underscores its commitment to promoting trade and investment agreements between the US and Africa, aiming to enhance global supply chains for critical minerals like graphite.
This investment is aligned with efforts to scale high-quality infrastructure projects and economic development initiatives, as highlighted during the recent G20 Summit.
