Syrah Resources Ltd [ASX:SYR] shares are up 6.99% today after the company received some good news.
What Happened to cause the 6.99% jump?
The company holds the rights to the Balama Project in Mozambique. The site is the largest graphite deposit in the world. There is more graphite at Balama than the rest of the world’s combined supply. Suffice to say, Syrah are itching to get their hands on it.
Today they announced that the Mozambique government had finally approved the company’s request to mine the site. While the paperwork will still need to be officiated, it is all but guaranteed at this point.
What next for Syrah resources?
The company has stated that it will continue to update shareholders on developments. They are planning to announce the commercial terms of the agreement as soon as it is binding.
CEO of Syrah, Shaun Verner commented,
‘The approval of the Mining Agreement by the Government of Mozambique represents a significant milestone for the Company and reaffirms Mozambique’s commitment to the long-term sustainability, stability and success of the Balama Project.’
It’s another big win from the Aussie resource sector, which has been hit hard by poor commodity prices over the past year. But, things are looking up once more, and not just for Syrah.
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Junior Analyst, Money Morning