Battery materials development company NextSource Materials has signed a mandate letter with the International Finance Corporation (IFC) to mobilize funds for the expansion of the Molo graphite mine in Madagascar.
Per the terms of the agreement, the IFC will lead a senior debt facility to the tune of $91 million. The funds will enable NextSources Materials – operator of the mine – to increase production from the current 17,000 tons per annum (tpa) to 150,000 tpa. According to a feasibility study completed in December 2023, the expansion comprises a capital cost of $161.7 million, in addition to $25.2 million of working capital.
The IFC will coordinate the debt syndicate with other select commercial financial institutions, with the facility expected to fund approximately 50% of the capital costs and working requirements of the mine’s expansion. Due diligence for the debt facility has started and is expected to be finalized by Q1 2025.
“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,” stated Craig Scherba, President and CEO of NextSource Materials.
