Ontario Construction News staff writer
Electra Battery Materials announced on Oct. 25 that it has secured a non-binding term sheet for $6.9 million from holders of its secured notes. This funding will be used for early work and preparations for winter at its cobalt refinery project in northeastern Ontario, as well as other business needs.
Construction at the site was paused last year due to rising costs caused by inflation. The refinery, located between Cobalt and Temiskaming Shores, has been refurbished and is set to produce 6,500 tonnes of processed cobalt sulfate each year.
To complete the project, Electra needs about $60 million. A significant portion of this was addressed last summer when the U.S. Department of Defense provided $20 million. Discussions are ongoing with other potential investors, and in September, Electra secured a $20 million non-binding term sheet from an undisclosed partner in the battery materials industry.
The latest funding includes $4 million in secured notes that can convert into shares, and $1 million in common shares priced at $0.543 each. The convertible notes can be exchanged for shares at $0.62445 each, which is a 15 per cent premium over the price of the shares issued with this financing.
Electra has also appointed a construction manager to oversee the resumption of work at the refinery later this fall or early winter. As the only cobalt refinery in North America, Electra aims to play a key role in the supply chain for critical minerals, especially as it looks to develop a larger industrial hub to support the electric vehicle market.
“This funding allows us to prepare for the final phase of construction for North America’s only cobalt sulfate refinery,” said CEO Trent Mell. “We are grateful for our lenders’ ongoing support as we finalize our project financing.”
Mell highlighted the importance of reducing reliance on Chinese materials in the electric vehicle supply chain. Once operational, the refinery is expected to produce enough cobalt sulfate to support the production of one million electric vehicles each year.
