Syrah Resources Limited (ASX: SYR) Agrees to DFC Loan Waiver
Loan Waiver Announcement
Syrah Resources Limited (ASX: SYR) has confirmed a waiver agreement concerning events of default on its loans with the United States International Development Finance Corporation (DFC). This development follows operational interruptions at Syrah’s Balama Graphite Operation in Mozambique.
The waiver comes with certain conditions, allowing Syrah to maintain access to a US$53 million disbursement from the DFC loan, which was received in November 2024. These funds are intended for working capital to sustain operations at Balama. However, further disbursements from the DFC loan remain unavailable as long as operations at Balama are impeded by ongoing protest actions across Mozambique.
Operational Challenges
The operational interruptions at the Balama site have been closely monitored by Syrah and its financial partners DFC and the Department of Energy (DOE). Despite the triggering of these events of default, Syrah has clarified that it remains current with its payment obligations under the loans.
The situation in Mozambique is complicated by nationwide protests linked to general elections, causing significant disruptions throughout the country. “We are continuing to work collaboratively with DFC and DOE regarding these events of default,” stated Shaun Verner, Managing Director of Syrah Resources.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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