The proposed financing package represents around 12% of total project financing, and reduces operating costs as Focus moves to self mining instead of contractor-mining, the company said.
Focus Graphite president and COO Don Baxter said: "Both parties are discussing mine equipment leasing plus project financing options with a view to achieving a mutually satisfactory conclusion.
"Cat Financial’s interest in Focus’s advanced position in the Canadian graphite mining sector underscores the significant progress the Focus team has made in developing our Lac Knife high purity graphite mining project."
The feasibility study of Lac Knife project showed a mine and concentrator operation requires $165.6m investment.
Caterpillar Financial provides financial solutions, including integrated project and structured solutions.
