GreenRoc Strategic Materials PLC (LSE:GROC) shares were on the front foot on Wednesday after it announced the signing of a €5.2 million secured loan agreement with the Export and Investment Fund of Denmark, to fund development of its Amitsoq graphite project in south Greenland and a European pilot plant for producing active anode material.
The five-year facility may be drawn down over two years and repaid in cash or converted to equity subject to defined limits.
The financing is split, €3.3 million for the pilot plant and 1€.9 million for mine development. The debt is convertible, capped to a maximum 10% equity holding, with a valuation floor of £30 million and a ceiling of £140 million.
“This financing agreement reached with EIFO is the most significant moment for GreenRoc since the creation of the Company in late 2021," said chair George Frangeskides.
Chief executive Stefan Bernstein added that the loan “will provide us with vital funds to advance our graphite business.”
In London, GreenRoc shares were up 22% changing hands at 2.94p.