Eagle Graphite engaged US Capital Partners of San Francisco as lender and advisor for due diligence engagement to fund up to $30 million under a proposed debt facility.

The contemplated facility under due diligence engagement consists of a machinery and equipment financing, a term loan and a convertible debt facility. The parties anticipate that Eagle will draw incrementally upon the various components of the facility as it progresses through a series of project milestones.

Torey Marshall, Eagle’s EVP of Business Development, added, “The management of Eagle Graphite is always striving to introduce value to our shareholders and we see this funding package as a lever to unlock significant value in the Black Crystal project and create a springboard for further growth. We intend to continue to surprise the market and demonstrate the quality of our assets and the management team that brings value out in them.”

Eagle Graphite CEO Jamie Deith stated, “We are very excited to be working with US Capital on such a significant financing package. Successful closing on this facility would see the resumption of graphite production and further development and expansion of the Black Crystal graphite quarry. We are already the only junior public company with a permitted, operational graphite quarry in North America, and a long term supply agreement with a major North American customer. By further advancing the project we are cementing our position as a ready source for this critical material, and setting ourselves even further apart from our competitors.”

Key Terms of the facility:

• Machinery and equipment term loan for up to $10.5 million, with a four-year term and a rate of LIBOR + 15%,
• Term loan for up to $9.5 million, with a 4 year term at a rate of LIBOR + 8%,
• Convertible debt of up to $10 million, with a one-year term and conversion rate to be determined.