Australia-based Syrah Resources on Thursday announced a fully underwritten A$104-million equity raising alongside non-binding strategic funding proposals from the US International Development Finance Corporation (DFC), the US Department of Energy (DoE) and AustralianSuper aimed at strengthening its balance sheet and funding growth.

The company said the initiatives would provide pro forma liquidity of up to $198-million and deliver a pathway to near-term sustainable cash flow, while supporting the ramp-up of its Balama graphite operation in Mozambique and the Vidalia active anode material facility in the US.

The equity raising will be undertaken through a fully underwritten prorata accelerated non-renounceable entitlement offer, with strong backing from AustralianSuper.

In parallel, Syrah has received strategic funding proposals that would see a substantial portion of its existing debt converted into equity and convertible loan notes, while also deferring cash interest and principal repayments for three years.

MD and CEO Shaun Verner said the combined funding initiatives would significantly enhance financial flexibility.

“Following the equity raise and the strategic funding proposals, Syrah will have a robust balance sheet with pro-forma liquidity of $198-million to support ramp-up at Balama and Vidalia and provide a pathway to near-term sustainable cash flow generation.

“The strong alignment with the US International Development Finance Corporation, the US Department of Energy and AustralianSuper underscores the strategic importance of Syrah’s assets in developing a secure, ex-China supply chain for critical battery materials.”

Under the proposals, the DFC would convert about $31-million of its existing loan into equity, potentially resulting in a shareholding of about 20% in Syrah, subject to approvals. Additional debt from the DFC, DoE and AustralianSuper would be restructured into new convertible loan notes, with further funding available through secondary instruments if required.

The company said proceeds from the equity raising, a proposed additional $15-million DFC loan disbursement and the broader funding package would be used primarily to support production ramp-up at Balama and working capital for Vidalia.

Syrah noted that the strategic funding proposals remained non-binding and were subject to a range of conditions, including regulatory and shareholder approvals, with financial close targeted for the second half of 2026.