Australia's Syrah to raise $72 million to fund graphite operations

Syrah Resources

26/03/2026 03:29

March 26 (Reuters) - Australia's Syrah Resources SYR.AX said on Thursday it will raise around A$104 million ($72.2 million) to fund its graphite operations, including a cornerstone investment from AustralianSuper, the country's largest pension fund.

Here are some details:

The equity raising will be via a fully underwritten non-renounceable entitlement offer of around 994 million shares at A$0.105 each, representing a 27.6% discount to the stock's last close. Trading in the shares has been halted pending Thursday's announcement.

AustralianSuper, Syrah's largest shareholder, has committed to take up its full entitlement of about A$35 million and to sub-underwrite up to A$69 million under the offer.

The graphite miner said funds will be used for working capital to support commercial sales at its Vidalia plant in the U.S. state of Louisiana, and for the ramp-up of its Balama operations in Mozambique to targeted levels.

Syrah remains in talks with Tesla TSLA.O to resolve an alleged default under their graphite supply deal, after extending its deadline four times. Failure to reach a solution could allow the Elon Musk-led firm to terminate the offtake deal covering supply from the Vidalia facility.

The company said it has received non-binding strategic funding proposals from various parties, including the U.S. Department of Energy and AustralianSuper, offering up to $198 million in liquidity.

Under the proposals, a substantial portion of Syrah's debts would be converted into or exchanged for new shares and convertible loan notes, helping reset the miner's balance sheet.

AustralianSuper may issue up to $38 million in secondary convertible loan notes to provide additional liquidity.

($1 = A$1.4413)

 (Reporting by Nikita Maria Jino in Bengaluru; Editing by Sumana Nandy)

 ((Nikita.Jino@thomsonreuters.com;))