NextSource has signed a Mandate Letter with the International Finance Corporation (IFC) for a senior debt facility totalling US$91m. This facility should fund approximately 50% of the cost of the expansion of the Molo graphite mine in Madagascar to an annual capacity of 150kt pa of SuperFlake® graphite concentrate from the current 17kt pa of Phase 1. This funding is in line with our expectations as published in our recent initiation. We expect public confirmation of support from the IFC will provide encouragement to potential funders of the other 50% of the Molo expansion development cost, including Vision Blue which holds a 47% interest in NextSource. On our calculations NextSource is trading on a fraction of its net asset value and is heavily discounted in relation to peers.
