Canadian graphite developer Focus Graphite has secured a revolving credit facility of up to C$2-million with Canadian Imperial Bank of Commerce.

The facility provides the company with additional working capital flexibility as it advances work programmes on its two graphite projects - Lac Knife and Lac Tetepisca - of which the former is also supported by non-dilutive government funding agreements.

Focus has secured more than C$15-million in previously announced federal funding to support development of its Lac Knife project and downstream graphite-processing initiatives. This includes up to C$14.1-million in non-repayable funding from Natural Resources Canada under the Global Partnerships Initiative (GPI), and up to C$1.3-million in non-repayable funding under National Resources Canada's First and Last Mile Fund.

The GPI funding in particular supports the company's programme to advance electrothermal purification of Canadian natural flake graphite and the development, piloting and demonstrating of ultrahigh-purity graphite production capabilities. In turn, the First and Last Mile Fund proceeds support engineering, environmental, permitting, Indigenous engagement and feasibility activities associated with planned road and electrical infrastructure for the Lac Knife project.

As these programmes move further into active execution, Focus expects the scale and frequency of eligible expenditures to increase.

The new revolving facility is intended to provide liquidity during the period between the company's payment of qualifying project costs and receipt of eligible government contributions, allowing capital to be recycled as reimbursements are received while maintaining continuity across funded work programmes.

While the revolving facility is intended to reduce the company's reliance on equity financing for these short-term requirements, it does not preclude Focus from accessing the equity markets or other sources of capital in the future where the company determines such financing is appropriate to advance its broader development strategy.

Focus CEO Dean Hanisch explains the scale of non-dilutive government funding that Focus has secured creates an important opportunity to advance the Lac Knife project, related infrastructure and the company's downstream technology programmes while preserving shareholder capital.

"Because these contribution programmes generally require eligible expenditures to be incurred before reimbursement is received, this revolving facility gives us an efficient way to bridge that timing difference and maintain momentum across our funded work programmes.

"Our intention is to use the revolving facility as a working-capital bridge, reduce borrowings as approved government contributions are received and recycle that availability into subsequent phases of work where appropriate. Adding conventional bank credit gives us greater financial flexibility without issuing equity or warrants and supports our broader objective of minimising unnecessary shareholder dilution as we execute on these programmes," Hanisch concludes.