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 of cash mostly -- C$61.2 million.
Electra amassed the capital as it continues to advance its plans to develop North America's only battery materials park.
READ: Electra Battery announces 30% increase in design capacity of Canadian battery materials refinery
In line with phase one of the company's strategic plan, Electra said it remains on schedule to commission its expanded refinery in the 4Q of 2022, at which time it will become the only refiner of battery-grade cobalt sulfate in North America and the second-largest outside of China.
The company also said it continues to review battery recycling opportunities as it has successfully extracted nickel, cobalt, copper, manganese, lithium, and graphite from recycled battery material known as black mass.
Electra said a scoping study from a leading engineering firm on the leaching of black mass within the existing refinery is in progress with results expected during the 4Q of 2021.
Electra is building North America's only fully integrated, localized, and environmentally sustainable battery materials park. Leveraging the company's own mining assets and business partners, the Electra Battery Materials Park will host cobalt and nickel sulfate production plants, a large-scale lithium-ion battery recycling facility, and battery precursor materials production, which will serve both North American and global customers.
Highlights of the company’s 3Q include:
- Closing of the refinery construction financing package in September for gross proceeds of about US$45 million, comprising US$37.5 million of 6.95% senior secured convertible notes due December 1, 2026, and about US$7.5 million from a common share equity offering.
- In October 2021, an additional US$7.5 million of additional convertible notes were issued on the same terms. The total aggregate gross funding received since the start of September 2021 is about US$52.5 million.
- Contracts and purchase orders awarded to date of C$30 million to advance the refinery along its stated development timeline, including awarding contracts for the two most expensive and longest-lead components of the refinery -- the cobalt crystallizer and the solvent extraction plant.
- Receipt of C$1 million worth of Kuya Silver Corporation common shares pursuant to the transaction completed in February 2021. The payment relates to Kuya exercising their option to commence a joint venture process such that with future payments to Electra and spending on exploration activities, Kuya can earn up to a 70% interest in the company's remaining mineral rights in the Canadian Cobalt Camp.
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