Cornish Lithium Ltd is to receive up to £18 million from technology metals investment company TechMet Ltd.
TERMS
The investment, subject to shareholder approval, will be in two tranches raising up to £18m at a weighted average subscription price of 16.12 pence per share.
Tranche one sees the South African investor subscribe for £9m new ordinary shares in Cornish Lithium at a subscription price of 13.5 pence per share.
Tranche two follows the publication of the scoping study for Trelavour, when TechMet can elect to subscribe for a further £9m new ordinary shares at a subscription price of 20 pence per share.
All new shares issued to TechMet will rank pari passu with existing ordinary shares in Cornish Lithium Ltd.
Chief technical officer of TechMet Simon Gardner-Bond will also join the Cornish Lithium board.
RIGHT OF FIRST OFFER
Following tranche two, and for as long as TechMet maintains at least 15% share or above, TechMet has a right of first offer to market lithium products from the company’s projects.
Cornish Lithium said that TechMet would work with the company to prioritise UK-based customers, including UK battery and automotive manufacturers.
PROGRAMME
The funding will allow Cornish Lithium to construct a beneficiation and hydrometallurgical demonstration plant to optimise the low carbon Lepidico processing technology.
The company will also work towards feasibility studies for the Trelavour project ahead of construction plans and commercial production.
The investment will fund further drilling of geothermal evaluation boreholes and developing associated direct lithium extraction sites.
The company will also continue studies on using heat from the boreholes to decarbonise local industries.
ETHICAL
Founder and chief executive Jeremy Wrathall said that the company had reached an inflexion point where larger scale investment was required.
“TechMet has the financial capability to contribute additional capital if required and thus represents a strong, long-term partner for Cornish Lithium.
“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.”
TECHMET
South African metals industrialist Brian Menell founded TechMet in 2017.
The company’s assets include North American lithium-ion battery recycling company Li-Cycle Corp; nickel and cobalt miner Brazilian Nickel; US Vanadium; and tin and tungsten producer Tinco.
The Menell family company Anglovaal Group has been involved in African mining and industry for 80 years.