NextSource Materials Inc. (TSX:NEXT, OTCQB:NSRCF) said it has secured a US$91 million senior debt facility led by the World Bank to pay for expansion of the Molo graphite mine in Madagascar.
A mandate letter has been signed with the World Bank's International Finance Corporation private sector investment arm, the Toronto company said in a statement.
According to the technical feasibility study, a large-scale expansion of the Molo mine and processing facility from its current production capacity of 17,000 tonnes per annum (tpa) to 150,000 tpa of SuperFlake graphite concentrate has an estimated capital cost of US$161.7 million plus working capital of US$25.2 million.
For IFC to coordinate an debt syndicate with other select commercial banks and development finance institutions, it offered to fund roughly 50% of the capital costs and working capital requirements for the mine expansion to the 150,000 tpa indicated in the TFS.
Signing the mandate letter with IFC marks a significant milestone in the path to expanding Molo and supporting the diversification of global supply chains for critical battery materials, said NextSource president and CEO Craig Scherba.
"This partnership underscores the confidence placed in NextSource's Molo mine expansion by one of the world's leading development finance institutions. With IFC's support, we are poised to unlock Molo's vast potential and further contribute to long term sustainable development in Madagascar."
Final approval from IFC is subject to satisfactory technical, social, legal and environmental due diligence, documentation and execution of acceptable terms, obtaining final credit, and regulatory and board approvals. Due diligence has commenced and is anticipated to complete in Q1 2025.