The Pilbara Minerals Ltd (ASX: PLS) share price is pushing higher on Friday.
In afternoon trade, the lithium miner's shares are up 3% to $5.47.
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Why is the Pilbara Minerals share price pushing higher?
As well as getting a boost from a booming share market, the release of an announcement has given the Pilbara Minerals share price a lift this afternoon.
According to the release, the company has secured a 10-year debt facility from the Australian Government through the Export Finance Australia (EFA) and Northern Australia Infrastructure Facility (NAIF) agencies.
This debt facility will be used to support the expansion of its Pilgangoora Operation in the Pilbara region of Western Australia.
The release reveals that the EFA has approved finance of $125 million and the NAIF has agreed to provide up to $125 million in funding.
Management believes that this funding demonstrates the Australian Government's willingness to support businesses to play a key role in supplying critical minerals that will aid the global transition towards renewable energy sources.
The facility is subject to final negotiation of terms, completion of detailed financing documents, as well as satisfaction of conditions precedent for financial close and drawdown.
Pilgangoora expansion
The expansion of the Pilgangoora operation is expected to deliver an additional 100,000tpa of spodumene concentrate production at an estimated capital cost of $103 million.
In addition, funds will be used to construct the 5Mtpa crushing and ore sorting facility. This will replace the existing contracted crushing facility and will facilitate future expansions that could ultimately deliver up to 1Mtpa of spodumene concentrate capacity across the entire Pilgangoora Operation at a capital cost of $194 million.
Pilbara Minerals CEO, Dale Henderson, commented:
We are extremely pleased to have received notice of the funding approvals from both EFA and NAIF. The continued support from the Australian Government is a significant endorsement for Pilbara Minerals, an Australian company that is a major player in the growing global lithium supply chain and demonstrates the Australian Government's commitment to our domestic critical minerals industry.
