09:12 AM EDT, 06/13/2024 (MT Newswires) -- NextSource Materials ( NSRCF ) said on Thursday that it signed a mandate letter with World Bank Group's International Finance arm for a US$91 million senior debt facility to fund the expansion of the Molo graphite mine in Madagascar.

According to NextSource, the facility would fund about 50% of the capital costs and working capital requirements for the mine expansion to 150,000 tonnes per annum.

"This partnership underscores the confidence placed in NextSource's Molo mine expansion by one of the world's leading development finance institutions," NextSource President and CEO Craig Scherba said.

NextSource said the financing is subject to International Finance's due diligence, which is expected to be completed in the first quarter of 2025, as well as documentation and other approvals.

NextSource's share price dropped 2.5% yesterday to $0.78.