Syrah Resources’ subsidiary Twigg Exploration and Mining expects to receive a further US$15 million (A$21.3 million) from the US International Development Finance Corporation (DFC) before 31 October.

The disbursement to Twigg will fund working and sustaining capital at the Balama Graphite Operation in Mozambique.

DFC has temporarily waived existing events of default on the loan facility to allow the advance, though it reserves all rights on further drawdowns. The lender may also appoint a nominee director to the Syrah board, subject to Foreign Investment Review Board approval.

Under the terms, the tranche carries an annual interest rate of 6% plus DFC’s cost of funds, alongside a 1% advance fee. Loan disbursements will total US$83 million, bringing the pro forma balance to US$93 million at 30 September with an average annual interest rate of 9.36%.

DFC will also receive warrants over roughly 5.4 million ordinary shares, with warrants over 17.5 million shares from a previous disbursement and interest deferral still pending issue. Full exercise of the warrants represents a 1% equity holding in Syrah.

The group is progressing partnering discussions for additional capital and will appoint Jefferies as sole financial adviser.

Syrah Resources is an industrial minerals and technology company focused on the mining, processing, and supply of natural graphite and battery anode materials for lithium-ion batteries and industrial markets.