Syrah receives US$150m DFC loan for Balama

Syrah Resources’ subsidiary, Twigg Exploration and Mining Limitada (“Twigg”) has signed a binding agreement with the United States International Development Finance Corporation (“DFC”) for a US$150 million loan facility to support its Balama Graphite Operation in Mozambique. The loan is DFC’s first loan to a graphite operation and aligns with the US government’s push to secure critical minerals for clean energy and electric vehicle supply chains.

The DFC loan will help fund capital requirements at Balama, including:

• Working and sustaining capital in the operations of Balama;

• Current and future expansion of Balama’s tailings storage facility (“TSF”); and

• Feasibility studies for the development of Balama’s vanadium resource.

This deal is aligned with the US government’s strategy to foster investment in African trade and infrastructure, as well as its broader efforts to support the global energy transition.

The loan, which underwent extensive due diligence over a three-year period, included detailed market, technical, legal, environmental and social due diligence on Balama, Twigg and Syrah in addition to extensive negotiation of loan documentation. The DFC loan has been approved by the Syrah and Twigg Boards, DFC and Mozambique Government entities.

It will provide non-dilutive funding for Syrah’s Balama operations and support the company’s strategy for sustainable growth and capacity utilisation.