Technology Minerals PLC (LSE:TM1) said it raised £700,000 as its battery recycling subsidiary commissions its first lithium-ion recycling plant and looks to begin commercial production by the end of this month.
The funds were gleaned from a long-term shareholder through the issue of convertible loan notes (CLN), which carry a coupon of 12% for a term of 12 months from issue and are convertible into ordinary shares at 1.4p apiece.
Chief executive Alex Stanbury said: "We are pleased to have secured further funding from a long-term shareholder, that puts us in good stead to build upon the excellent progress we have made in establishing our twin-track strategy.
“The funding will support the company as it continues to advance its exploration assets up the value curve and Recyclus progresses through the commissioning phase at its Li-ion battery recycling plant and moves closer to commercial production."
Recyclus, which is 48.25% owned by Technology Minerals, is also expecting to obtain permitting for its first lead acid battery recycling plant from the Environmental Agency “shortly”, which would enable production to commence at industrial scale.
Costs associated with the funding are being settled by the issue of CLNs for £35,000 on the same terms, the company said, with 70 million warrants also issued at an exercise price of 2p per share with an exercise period of two calendar years, plus a further 3.5 million warrants in respect of funding costs on the same terms.