The Syrah Resources Ltd (ASX: SYR) share price is rocketing today after the graphite miner obtained a binding loan facility from the US Department of Energy (DOE).
The loan, of A$146 million (US$102 million), is for financing the initial expansion of the ASX mining share's Vidalia active anode material facility in Louisiana, USA.
Syrah shares caught a bid following the news and are currently up by 9.3% at $1.41 apiece.
What did this ASX mining share announce?
The Syrah Resources share price is on the rise after the company entered into a binding documentation for a loan facility with the US DOE for its subsidiary, Syrah Technologies, LLC.
Syrah will receive the loan under the DOE's Advanced Technology Vehicles Manufacturing (ATVM) loan program.
The ATVM is a $15.1 billion loan authority established to support the manufacture of eligible advanced technology vehicles, including electric vehicles (EVs), and qualifying components and materials, in the US.
Speaking on the announcement boosting the ASX mining share today, Syrah Resources managing director and CEO Shaun Verner said the loan "highlights Vidalia's strategic position in the USA". He added:
[The loan] provides strong validation of Syrah, Vidalia and the Vidalia initial expansion.
Importantly, the loan will allow Syrah to accelerate its growth strategy in its downstream business and support the rapidly growing EV and battery supply chain in the USA.
The loan is the first released from the ATVM program since 2011, according to Syrah. It is also the first loan made from the program to a materials processing facility.
The loan will mature in April 2032 and there are no early repayment penalties, despite a number of covenants embedded into the contract.
Terms also include a maximum of approximately $4 million in capitalised interest, with interest rates applicable to long-dated US Treasury yields.
Both parties hope the loan will be finalised by the end of September 2022, with the first advance within the December 2022 quarter.
The ASX graphite miner's share price is up by just over 1% over the past 12 trading months. However, it has slipped around 21% into the red this year to date.
