Focus Graphite Inc. has secured a C$2 million revolving credit line from Canadian Imperial Bank of Commerce (CIBC) to address a critical funding gap in its operations. The facility, structured on CIBC’s prime rate plus 2.00% annually on drawn amounts, will provide working capital flexibility to bridge delays between project expenditures and reimbursements under government funding agreements.
The credit line is part of a broader financial strategy that includes over C$15 million in non-dilutive federal funding secured for the company’s Lac Knife Graphite Project in Quebec. This includes approximately C$14.1 million in non-repayable support from Natural Resources Canada’s Global Partnerships Initiative (GPI) and up to C$1.378 million from the First and Last Mile Fund (FLMF).
The GPI funding, announced in December 2025, supports Focus Graphite’s efforts to advance electrothermal purification of Canadian natural flake graphite and develop ultra-high-purity graphite production capabilities. The FLMF funding, announced in June 2026, will fund engineering, environmental permitting, Indigenous engagement, and feasibility studies for planned road and electrical infrastructure at Lac Knife.
The credit line is secured by a first security interest over Focus Graphite’s personal property and backed by an unlimited guarantee from the company’s chairman. No securities were issued in connection with the facility, ensuring the funding remains equity-free. CEO Dean Hanisch noted that the credit line provides an efficient way to manage timing differences, reducing reliance on equity markets for reimbursement delays and maintaining momentum in the company’s funded projects.
Focus Graphite operates in the high-grade flake graphite sector, supplying advanced graphite materials for applications in batteries, defense, and industrial sectors. The company’s Lac Knife Project is positioned to capitalize on growing demand for graphite as a critical mineral for emerging technologies.
