Battery materials and technology company Talga Group (ASX:TLG) has secured a $31 million environmental bond facility for its Vittangi Anode Project in Sweden.
The $402.24 million market capitalisation company says the facility has been provided by European surety and insurance company Atradius.
Funds will be used to meet environmental bonding requirements as agreed in a granted environmental permit for the construction and operation of Talga’s fully integrated natural graphite mine and battery anode refinery.
Talga reports the project is poised to produce 19,500 tonnes of its proprietary coated-shaped purified graphite anode material — Talnode-C — per year, which is used in the production of lithium-ion batteries.
The company notes the facility has been secured in addition to the project financing facilities being progressed with Talga’s debt consortium, comprising European Investment Bank (€150 million), Swedish government-owned export credit agencies, and leading commercial bankers.
Talga Chief Financial Officer (CFO) Melissa Roberts says the facility represents another milestone for its project and provides the company with ‘significant’ flexibility.
She says it provides flexibility for the company, which is focused on the development of sustainable battery materials through innovative technology and vertical integration of its wholly owned Swedish graphite resources.
The company’s flagship product, Talnode-C represents a natural graphite anode material made using renewable energy for a low emissions footprint.
Atradius is a provider of trade credit insurance, surety, and debt collection services whose financial strength has been affirmed by agencies AM Best and Moody’s.
As of 30 September, Talga Group had $28.164 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Talga Group
