Technology Minerals PLC (LSE:TM1) has signed a £4mln convertible bond facility with Macquarie Bank (MBL) and Atlas Capital (ACM) to fund the ramp-up of the first phase of operations at its Tipton lead-acid battery recycling plant.
Funds will also be earmarked to support Technology Mineral’s plan to develop lithium-producing mining assets in Ireland as part of its twin-track recycling strategy.
Terms of the loans are a coupon of 5% per annum over the SONIA (sterling overnight) rate, payable quarterly in cash or in shares at the company's discretion.
The facility can be drawn in eight tranches of up to £500,000, with MBL and ACM purchasing the convertible bonds at a fixed price equal to 95% of the principal amount.
A transaction fee equal to 3% of each tranche is payable in cash, while warrants equal to 30% of each tranche are attached to the bonds.
Alex Stanbury, Technology Minerals' chief executive, said: "The £4mln convertible bond facility complements our fundraise in November and strengthens the company's position as we look to ramp up our operations at Tipton and progress with our twin-track growth strategy to create a circular economy for battery metals."