Graphite play Syrah Resources is preparing to ask shareholders for fresh capital to help fund a processing plant in the United States.
It is understood Syrah spent the weekend readying a $250 million equity raising, split between an institutional placement and rights issue, and targeting existing investors.AustralianSuper, already Syrah’s biggest shareholder, was expected to follow its money into the deal.A Syrah spokesperson could not be reached for comment late on Sunday night.Funds raised would be used to complete expansion of the company’s downstream processing plant in the United States.
Syrah said it would make a final investment decision for construction of the expanded Vidalia facility in January, subject to financing commitments. On January 31, it told shareholders it was well placed to make a call on the Vidalia initial expansion “in the near term”. Bank of America is understood to be helping Syrah with the raising. The graphite company has historically raised via rival institutional equities house Credit Suisse.Should Syrah launch the cash call, it would be the biggest equity raising in Australia this year.
co-edits Street Talk, specialising in private equity, investment banking, M&A and equity capital markets. He has 10 years' experience as a business journalist and worked at PwC, auditing and advising financial services companies.
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