NextSource Materials Inc. (TSX:NEXT, OTCQB:NSRCF) has announced a drawdown credit facility of up to US$20 million with Vision Blue Resources.
The proceeds, which are non-dilutive to shareholders, will be used to progress the company’s battery anode facility strategy, support the ramp-up at Molo Graphite Mine and for general working capital purposes.
"The funding from Vison Blue enables us to complete the ramp-up and growth of the Molo Graphite Mine while also continuing to advance our plans to develop battery anode facilities,” NextSource CEO Hanré Rossouw said in a statement.
“The recent commencement of commercial sales of graphite concentrate and the strengthening of our management team demonstrate the progress we have already made. With the continued support from Vision Blue, we are making meaningful progress towards our vision of becoming a leader in sustainably produced battery materials."
NextSource may access the facility in four equal tranches, with an initial US$5 million drawdown expected by the end of January.
Further drawdowns will depend on the company’s financial needs and the facility’s availability.
Interest is set at 15% per annum, and repayment can be demanded after June 2025.
The facility is secured against the company's assets and can be repaid at any time without penalty.
As Vision Blue holds 47.7% of NextSource’s shares, the facility qualifies as a related party transaction.
Shares of NextSource added 6% in Toronto on Thursday morning.