Cornish Lithium announces £18 million of investment from TechMet which will enable progress on Trelavour hard rock & direct brine extraction projects – International Mining
Cornish Lithium Ltd, the innovative mineral exploration and development company based in Cornwall, UK, has announced that it has secured a transformational investment package of up to £18 million from TechMet Ltd, a leading technology metals investment company. “Securing long-term investment from TechMet is a significant step forward for Cornish Lithium and allows the company to step up its activities towards creating a domestic supply of lithium and other battery metals for the UK. The investment represents a key milestone for the company given that it is the first investment that Cornish Lithium has secured from a financial institution.”
Cornish Lithium says it expects to benefit from TechMet’s deep knowledge of the battery metals supply chain and extensive commercial and strategic relationships. Simon Gardner-Bond, Chief Technical Officer of TechMet, will join the Cornish Lithium Board. The investment from TechMet, a company that invests in technology metals projects around the world, will enable Cornish Lithium to fast-track development of its project portfolio in Cornwall and to significantly advance the company’s strategy of establishing a domestic supply of battery metals. The investment will occur in two tranches. The first tranche of £9 million to be invested upon receipt of shareholder approval and the second tranche of £9 million will be invested, at the option of TechMet, following the delivery of the Scoping Study for the Trelavour Hard Rock Project, which is on track for completion in Q2 2022.
The funding package will enable the company to significantly accelerate its projects, including the construction of a beneficiation and hydrometallurgical demonstration plant that will enable the company to optimise the low carbon Lepidico processing technology to which Cornish Lithium secured a 15-year royalty free licence in 2020. It will also allow progress towards feasibility studies for the Trelavour Project, which will enable the company to materially progress construction plans and to seek the necessary finance to build the Trelavour Project and move towards commercial production. It will also permit drilling additional geothermal evaluation boreholes and developing associated direct lithium extraction sites to further demonstrate Cornwall’s prospectivity for lithium contained in geothermal waters. The company will also progress studies into the possibility of using heat from these boreholes to decarbonise local industries in Cornwall.
Jeremy Wrathall, CEO and Founder of Cornish Lithium, said: “We are delighted to welcome such a prestigious investor to Cornish Lithium. TechMet’s support validates the extensive work we have completed in Cornwall since the company was founded in May 2016. The investment by TechMet, combined with the proceeds of the recent crowdfunding campaign, will provide the balance sheet strength and financial certainty to enable us to progress our projects and to create value for all our shareholders. Cornish Lithium has reached an inflexion point in the company’s development where larger scale investment is required. This funding underpins the company’s ambitions in Cornwall as we seek to progress our projects towards construction and commercial production. TechMet has the financial capability to contribute additional capital if required and thus represents a strong, long-term partner for Cornish Lithium. This investment reinforces the merits of our projects as we seek to progress towards commercial production. Importantly, TechMet’s mission of building ethical and environmentally sound supply chains for the metals needed to ensure the success of the clean energy and electric vehicle revolution, is fully aligned with that of Cornish Lithium.”
He adds: “As the world transitions towards electric vehicles a material lithium supply gap is looming, especially in the UK given the requirement for an estimated 75,000 t of lithium carbonate equivalent by 2035, according to The Faraday Institution. Cornish Lithium intends to position itself as a key player in the necessary supply chains to bridge that gap. Cornish Lithium looks forward to welcoming Simon Gardner-Bond as a director of the company and to benefitting from Simon’s depth of knowledge and experience that he will bring to bear as we develop our projects.”
Brian Menell, CEO and Chairman of TechMet, commented: “We have been extremely impressed by the innovative and talented Cornish Lithium team, which has made considerable progress over the past few years. We are excited to be supporting the next phase of development and building a long-term partnership with Cornish Lithium, which could become a cornerstone of the UK’s battery metal supply chain as well as having very positive implications for Cornwall’s local economy. This financing is an important step in advancing Cornish Lithium’s development programme. As the UK’s pre-eminent prospective lithium producer, it also represents an important step in the development of a domestic lithium supply for the UK economy.”
TechMet was founded in 2017 by British/South African metals industrialist, Brian Menell, with the aim of developing assets that produce metals for which global demand is expected to vastly outweigh supply as the world moves to clean energy technologies. Its assets include Li-Cycle Corp – North America’s largest lithium-ion battery recycling company listed on the NYSE; Brazilian Nickel – a mining and extraction company developing production of nickel and cobalt suitable for EV batteries; US Vanadium – which produces vanadium products suitable for redox flow batteries; and Tinco – a portfolio of producing tin and tungsten mines. TechMet’s largest shareholders include Lansdowne Partners (one of London’s foremost asset managers); the US International Development Finance Corporation (the US Government’s development finance institution); and Mercuria (the global energy and commodity trading company) together with TechMet Chairman and CEO, Brian Menell.
Proceeds from the investment as stated will be utilised by the company to progress both its hard rock and geothermal work streams and is expected to provide sufficient working capital to fund its ambitious development plans to at least the end of 2022. With regard to Cornish Lithium’s exploration plans for lithium contained in geothermal waters the funding will enable the company to drill and evaluate additional sites, further demonstrating the regional potential in Cornwall. In addition, the company will explore opportunities to generate complimentary commercial heat supplies in order to provide local businesses with low carbon energy. The funding will also enable further research into direct lithium extraction and refining technologies to optimise the recovery of lithium in a cost effective and sustainable manner.
In relation to the Trelavour Project, the proceeds of the investment will enable Cornish Lithium to complete several key workstreams. Following completion of the Scoping Study, the company intends to construct a demonstration scale beneficiation and hydrometallurgical plant in order to further refine the metallurgical extraction process, which will ultimately inform the design of a commercial production plant. The company now expects to have sufficient funding to complete a feasibility study on the Trelavour Project which would be used by the company to obtain the necessary debt and equity finance to enable project construction.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
