Focus Graphite Secures C$2 Million Credit Facility for Government-Funded Projects
News related to:Focus Graphite Inc · 2 min read
Focus Graphite Inc., a Canadian developer of high-grade flake graphite deposits and advanced graphite materials, has secured a C$2.0 million revolving credit facility with Canadian Imperial Bank of Commerce (CIBC). This move is aimed at providing the company with additional working capital to support its ongoing government-funded work programs and to bridge the timing between project expenditures and government contributions.
The credit facility is part of Focus Graphite's broader strategy to advance its Lac Knife Graphite Project and downstream graphite-processing initiatives. The company has received more than C$15 million in non-dilutive federal funding to support these efforts. Specifically, Focus Graphite has secured up to C$14.1 million in non-repayable funding from Natural Resources Canada (NRCan) under the Global Partnerships Initiative (GPI) and up to C$1,378,700 in non-repayable funding under the First and Last Mile Fund (FLMF).
The GPI funding will support the development of electrothermal purification of Canadian natural flake graphite and the advancement of ultra-high-purity graphite production capabilities. The FLMF funding will support engineering, environmental, permitting, Indigenous engagement, and feasibility activities related to planned road and electrical infrastructure serving the Lac Knife Graphite Project in Quebec.
According to Dean Hanisch, Chief Executive Officer of Focus Graphite, the credit facility will provide the company with the necessary liquidity to manage the timing between the payment of eligible project costs and the receipt of government contributions.
The credit facility, which provides Focus Graphite with a revolving demand line of credit of up to C$2.0 million, will bear interest at CIBC's Prime Rate plus 2.00% per annum. Amounts drawn under the facility can be repaid and re-borrowed, offering the company flexibility to manage recurring working capital requirements as its funded programs progress. The facility is secured by a first security interest over the company's present and after-acquired personal property and is supported by an unlimited guarantee from the Chairman of Focus Graphite.
The credit facility is intended to reduce the company's reliance on equity financing for short-term working capital requirements.
With the credit facility in place, Focus Graphite is well-positioned to continue advancing its work programs and leveraging the non-dilutive government funding to drive the development of its graphite assets and downstream technologies.