Electra Battery Materials Corporation closes third quarter with working capital of C $ 62.8 million

Electra Battery Materials Corporation (TSX-V: FCC, OTCQX: FTSSF) closed its third quarter with working capital of C $ 62.8 million.

For the quarter ended September 30, 2021, the company said its balance sheet consisted mostly of cash – C $ 61.2 million.

Electra has raised capital as it continues to advance its plans to develop the only fleet of battery materials in North America.

READ: Electra Battery Announces 30% Design Capacity Increase for Canadian Battery Materials Refinery

In line with the first phase of the company’s strategic plan, Electra said it is on schedule to commission its expanded refinery in the fourth quarter of 2022, when it will become the only battery-grade cobalt sulfate refiner. in North America and the second. the largest outside of China.

The company also said it continues to examine battery recycling opportunities as it has successfully mined nickel, cobalt, copper, manganese, lithium and graphite from known recycled battery materials. under the name of black mass.

Electra said a scoping study by a leading engineering company into black mass leaching at the existing refinery is underway with results expected in Q4 2021.

Electra builds the only fully integrated, localized, and environmentally friendly battery materials fleet in North America. Leveraging the company’s mining assets and business partners, the Electra Battery Materials Park will house nickel and cobalt sulfate production plants, a large-scale lithium-ion battery recycling facility and production of precursor battery materials, which will serve both North American and global customers. .

Highlights of the company’s 3Q include:

• Refinery construction finance package closed in September for gross proceeds of approximately US $ 45 million, comprising US $ 37.5 million of 6.95% senior secured convertible bonds due December 1 2026, and approximately US $ 7.5 million from an offering of common shares.
• In October 2021, an additional US $ 7.5 million of additional convertible notes were issued on the same terms. The total gross funding received since early September 2021 is approximately $ 52.5 million.
• Contracts and purchase orders awarded to date of C $ 30 million to move the refinery along its stated development schedule, including awarding contracts for the two most expensive and time consuming components of the refinery – the cobalt crystallizer and the solvent extraction plant.
• Receipt of common shares of Kuya Silver Corporation valued at C $ 1 million as part of the transaction concluded in February 2021. Payment relates to Kuya exercising his option to initiate a joint venture process of so that with future payments to Electra and spending on exploration activities, Kuya could earn up to 70% interest in the company’s remaining mineral rights in the Canadian cobalt camp.

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