Mineral exploration company Cornish Lithium Ltd has secured £18m in funding from a leading technology metals investor.
The Cornwall-headquartered company called the injection from TechMet Ltd “transformational” and a significant step forward for the business which will allow it to step up its mission to create a domestic supply of lithium and other battery metals for the 海角视频.
The investment represents a key milestone for the company given that it is the first investment Cornish Lithium has secured from a financial institution.
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Cornish Lithium said it expects to benefit from TechMet’s deep knowledge of the battery metals supply chain and extensive commercial and strategic relationships.
TechMet invests in technology metals projects around the world and its funding will enable Cornish Lithium to fast-track development of its project portfolio in Cornwall and to significantly advance the company’s strategy of establishing a domestic supply of battery metals.
The investment will occur in two tranches: The first tranche of £9m to be invested upon receipt of shareholder approval and the second tranche of £9m will be invested, at the option of TechMet, following the delivery of the Scoping Study for the Trelavour Hard Rock Project, which is on track for completion in Q2 2022.
The funding package will enable the company to significantly accelerate its projects including the construction of a beneficiation and hydrometallurgical demonstration plant that will enable the company to optimise the low-carbon Lepidico processing technology to which Cornish Lithium secured a 15-year royalty free licence in 2020.
It will also enable progress towards feasibility studies for the Trelavour Project, which will enable the company to progress construction plans and to seek necessary finance to build the Trelavour Project and move towards commercial production.
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The cash will also pay for the drilling of additional geothermal evaluation boreholes and developing associated direct lithium extraction sites to further demonstrate Cornwall’s prospectivity for lithium contained in geothermal waters.
The company will also progress studies into the possibility of using heat from these boreholes to decarbonise local industries in Cornwall. Simon Gardner-Bond, chief technical officer of TechMet, will join the Cornish Lithium board.
Jeremy Wrathall, chief executive and founder of Cornish Lithium, said: “We are delighted to welcome such a prestigious investor to Cornish Lithium. TechMet’s support validates the extensive work we have completed in Cornwall since the company was founded in May 2016.
“The investment by TechMet, combined with the proceeds of the recent crowdfunding campaign, will provide the balance sheet strength and financial certainty to enable us to progress our projects and to create value for all our shareholders.
“Cornish Lithium has reached an inflexion point in the company’s development where larger scale investment is required. This funding underpins the company’s ambitions in Cornwall as we seek to progress our projects towards construction and commercial production.
“TechMet has the financial capability to contribute additional capital if required and thus represents a strong, long-term partner for Cornish Lithium. This investment reinforces the merits of our projects as we seek to progress towards commercial production.
“Importantly, TechMet’s mission of building ethical and environmentally sound supply chains for the metals needed to ensure the success of the clean energy and electric vehicle revolution, is fully aligned with that of Cornish Lithium.
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“As the world transitions towards electric vehicles a material lithium supply gap is looming, especially in the 海角视频 given the requirement for an estimated 75,000 tonnes of lithium carbonate equivalent by 2035, according to The Faraday Institution. Cornish Lithium intends to position itself as a key player in the necessary supply chains to bridge that gap.”
Brian Menell, chief executive and chairman of TechMet, said: “We are excited to be supporting the next phase of development and building a long-term partnership with Cornish Lithium, which could become a cornerstone of the 海角视频’s battery metal supply chain as well as having very positive implications for Cornwall’s economy.
“This financing is an important step in advancing Cornish Lithium’s development programme. As the 海角视频’s pre-eminent prospective lithium producer, it also represents an important step in the development of a domestic lithium supply for the 海角视频 economy.”
TechMet was founded in 2017 by British/South African metals industrialist, Mr Menell, with the aim of developing assets that produce metals for which global demand is expected to outweigh supply as the world moves to clean energy technologies.
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Its assets include Li-Cycle Corp – North America’s largest lithium-ion battery recycling company listed on the NYSE; Brazilian Nickel – a mining and extraction company developing production of nickel and cobalt suitable for EV batteries; US Vanadium – which produces vanadium products suitable for redox flow batteries; and Tinco – a portfolio of producing tin and tungsten mines.
TechMet’s largest shareholders include Lansdowne Partners, one of London’s foremost asset managers; the US International Development Finance Corporation, the US Government’s development finance institution; and Mercuria, the global energy and commodity trading company; together with TechMet’s Mr Menell.