PROJECT FINANCE

Syrah loan from US Department of Energy reaches binding status

First drawdown expected later this year

 Syrah is getting connected to the US Dept of Energy

Syrah is getting connected to the US Dept of Energy

The first drawdown is expected in the December quarter.

Interest charged on the 10-year loan will be at long dated US Treasury rates, with the current rate being 2.8%.

Syrah said proceeds from an equity raising completed earlier this year are sufficient to fully fund the remaining capital costs of the 11,500t per annum Vidalia project in Louisiana, a development that processes graphite from Syrah's Balama mine in Mozambique into anode material used by battery makers.

Given the DOE loan, Syrah will use surplus proceeds from the equity raising for a definitive feasibility study on the expansion of Vidalia's production capacity to at least 45,000tpa.

Shares in Syrah were trading at A$1.29 this week, capitalising the company at $863 million.

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