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.
Oil rises as investors focus on OPEC+ decision amid growing Omicron fears
Oil prices rose on Thursday, recouping the previous day’s losses, as investors adjusted positions ahead of an OPEC+ decision over supply policy, but gains were capped amid fears the Omicron coronavirus variant will hurt fuel demand.
Brent crude futures rose 85 cents, or 1.2%, to $69.72 by 0402 GMT, having eased 0.5% in the previous session.
U.S. West Texas Intermediate (WTI) crude futures gained 85 cents, or 1.3%, to $66.42 a barrel, after a 0.9% drop on Wednesday.
“Investors unwound their positions ahead of the OPEC+ decision as oil prices have declined so fast and so much over the past week,” said Tsuyoshi Ueno, senior economist at NLI Research Institute.
Global oil prices have lost more than $10 a barrel since last Thursday, when news of Omicron shook investors.
“Market will be watching closely the producer group’s decision as well as comments from some of key members after the meeting to suggest their future policy,” Ueno said.
The Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+, will likely decide on Thursday whether to release more oil into the market as previously planned or restrain supply.
Since August, the group has been adding an additional 400,000 barrels per day (bpd) of output to global supply each month, as it gradually winds down record cuts agreed in 2020.
The new variant, though, has complicated the decision-making process, with some observers speculating OPEC+ could pause those additions in January in an attempt to slow supply growth.
“Oil prices climbed as some investors anticipate that OPEC+ will decide to maintain the current supply levels in January to cushion any damage on demand from the Omicron spread,” said Toshitaka Tazawa, an analyst at Fujitomi Securities Co Ltd.
Fears over the impact of the Omicron variant of the coronavirus rose after the first case was reported in the United States, and Japan’s central bank has warned of economic pain as countries respond with tighter containment measures.
U.S. Deputy Energy Secretary David Turk said President Joe Biden’s administration could adjust the timing of its planned release of strategic crude oil stockpiles if global energy prices drop substantially.
Gains in oil markets on Thursday were capped as the U.S. weekly inventory data showed U.S. crude stocks fell less than expected last week, while gasoline and distillate inventories rose much more than expected as demand weakened. [EIA/S]
Crude inventories fell by 910,000 barrels in the week to Nov. 26, the Energy Information Administration (EIA) said, compared with analyst expectations in a Reuters poll for a drop of 1.2 million barrels.
(Reporting by Yuka Obayashi; Editing by Tom Hogue)
Toronto market hits 7-week low on Omicron uncertainty
Canada‘s main stock index fell on Wednesday to its lowest level in over seven weeks as the United States reported its first case of the Omicron variant that investors fear could impede economic recovery, with the index giving back its earlier gains.
The Toronto Stock Exchange’s S&P/TSX composite index ended down 195.39 points, or 0.95%, at 20,464.60, its lowest closing level since Oct. 12.
Wall Street also closed lower as the U.S. Centers for Disease Control and Prevention said the country had detected its first case of the new COVID-19 variant, which is rapidly becoming dominant in South Africa less than four weeks after being detected there and has spread to other countries.
It might take longer than expected for supply chain disruptions to abate, “especially if we have renewed shutdowns in Asia,” said Kevin Headland, senior investment strategist, Manulife Investment Management.
Still, Headland does not expect the new variant to lead to an economic recession or a bear market for stocks in 2022, saying: “Reaction to headline news provides opportunities for those that have a longer-term timeframe to add in the equity markets.”
The TSX will add to its recent record high over the coming year as the domestic economic recovery helps underpin corporate earnings, but gains are expected to slow from 2020’s breakneck pace, a Reuters poll found.
The technology sector fell 2.7%, while energy ended 1.9% lower as oil was unable to sustain an earlier rally. U.S. crude oil futures settled 0.9% lower at $65.57 a barrel
The materials group, which includes precious and base metals miners and fertilizer companies, lost 2.2%.
Financials were a bright spot, advancing 0.4%, helped by gains for Bank of Nova Scotia as some analysts raised their target price on the stock.
Bombardier Inc was among the biggest decliners. Its shares sank 10.4%.
(Reporting by Fergal Smith; Additional reporting by Amal S in Bengaluru; Editing by Peter Cooney)
Canada’s TSX to extend record-setting rally; pace of gains to slow: Reuters poll
Canada‘s main stock index will add to its recent record high over the coming year as the domestic economic recovery helps underpin corporate earnings, but gains are expected to slow from 2020’s breakneck pace, a Reuters poll found.
The median prediction of 26 portfolio managers and strategists was for the S&P/TSX Composite index to rise 9.1% to 22,540 by the end of 2022.
That’s a move that would eclipse last month’s record high of 21,796.16 and compares with an August forecast of 22,000. It was then expected to edge up to 23,150 by the middle of 2023.
The index had advanced 18.5% since the start of the year, putting it on track for its second biggest gain since 2009.
“We think the economy and markets will continue to progress further into the mid-cycle phase next year,” said Angelo Kourkafas, investment strategist at Edward Jones. “We are past the strongest point of the cycle, but there is plenty of runway ahead, especially from an economic standpoint.”
Canada‘s economy https://www.reuters.com/world/americas/canadian-economy-posts-annualized-gain-54-q3-october-gdp-seen-up-08-2021-11-30 grew at an annualized rate of 5.4% in the third quarter, beating analyst expectations, and growth most likely accelerated in October on a manufacturing rebound.
“Banks can continue to benefit from an improving economy and reducing loan loss provisions and resource companies can benefit from higher commodity prices,” said Colin Cieszynski, chief market strategist at SIA Wealth Management.
Combined, the financial services and resource sectors account for 55% of the Toronto market’s valuation.
Nearly all participants that answered a separate question on the outlook for corporate earnings expected earnings to improve. But the pace of growth could slow.
“We expect a decelerating pace of (earnings) growth,” said Chhad Aul, chief investment officer & head of multi-asset solutions at SLGI Asset Management Inc. “In particular, we expect the recent strong earnings growth in the energy sector to begin to moderate.”
The price of oil, a key driver of energy sector earnings, has tumbled 24% since October, pressured by rising coronavirus cases in Europe and the detection of the possibly vaccine-resistant Omicron variant.
Another risk to the outlook could be a reduction in policy support, say investors.
With inflation climbing, the Bank of Canada https://www.reuters.com/world/americas/bank-canada-signals-it-could-hike-rates-sooner-than-expected-2021-10-27 has signaled it could begin hiking interest rates as soon as April and the Federal Reserve https://www.reuters.com/markets/us/powell-yellen-head-congress-inflation-variant-risks-rise-2021-11-30 is mulling whether to wrap up tapering of bond purchases a few months sooner.
“The key is the pace of both fiscal and monetary policy normalization,” said Ben Jang, a portfolio manager at Nicola Wealth. “This process will likely lead to more volatility in markets, potentially returning to an environment where we will see drawdowns of more than 10%.”
Asked if a correction was likely over the coming six months, nearly all respondents said yes.
(Reporting by Fergal Smith; polling by Mumal Rathore and Milounee Purohit; editing by David Evans)
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