The Pilbara Minerals Ltd (ASX: PLS) share price is trading lower on Wednesday.
In late morning trade, the lithium miner's shares are down 1.5% to $4.32.
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Why is the Pilbara Minerals share price falling?
The Pilbara Minerals share price is in the red today after broad market weakness offset the release of a positive announcement.
That announcement reveals that finance agreements have been executed for the A$250 million long-term debt facility with Australian Government agencies Export Finance Australia and Northern Australia Infrastructure Facility.
In addition, Pilbara Minerals has taken the opportunity to refinance its existing US dollar secured syndicated debt facility on improved terms.
What will the funds be used for?
Management notes that collectively, these new debt facilities support Pilbara Minerals' strategy to expand, grow, and diversify its business further down the battery materials supply chain.
The debt facility being provided by the Government Agencies will support the construction of the P680 Project expansion at the Pilgan Plant and a new 5Mtpa integrated crushing and ore sorting facility.
The former will deliver an additional 100,000tpa of spodumene concentrate production, whereas the latter will support future expansions that could ultimately deliver up to 1Mtpa of spodumene concentrate capacity across the Pilgangoora Project.
Pilbara Minerals' CEO, Dale Henderson, commented:
We are extremely pleased to have once again received strong financial support from the Australian Government and our commercial lending partners. The continued support from the Australian Government is a significant endorsement of Pilbara Minerals' assets and operations, recognising their strategic significance in the global battery materials supply chain.
With the completion of these new finance facilities, Pilbara Minerals is now incredibly well positioned to pursue our long-term growth and diversification ambitions to become a fully integrated lithium raw materials and chemicals supplier – and to play a pivotal role as a battery materials supplier for many decades to come.
