Graphite developer Syrah Resources has announced intentions to raise A$110-million through a share placement to fund development of Balama project.
The company said the funds will provide working capital for the Balama operation expected to produce an average of 365 000 t/y of graphite concentrate during its first ten years of production, to deliver free cash flow of $160-million a year.
Syrah said it had extensively reviewed potential financing options to see it through to the ramp-up of the Balama project, and for an acceleration of the battery anode material strategy.
“It has become clear that debt funding is an expensive option at this time.
In addition, given restrictions on the use of funds and other encumbrances proposed by debt financiers, debt funding would limit Syrah’s flexibility to accelerate its value-adding strategic options,” the company said.
Syrah believes equity raising is in the best interest of both the company and its shareholders.
