- Brandenburg's Ministry for Economic Affairs, Labour and
Energy has issued an LOI committing up to 90 million EUR in grants for Rock Tech's Lithium
Converter in Guben.
- Additionally, the Federal German Railway Authority
(Eisenbahnbundesamt) has offered the prospect of up to
10 million EUR of public funding to
support the construction of train loading and unloading
infrastructure.
- The subsides will be paid out over the construction period
as non-dilutive equity grants. Payout is contingent on
finalization of full equity and debt financing.
- In addition, the application process for up to 400
million EUR of federal guarantees to support Rock Tech's debt
financing is ongoing.
TORONTO, June 27,
2024 /CNW/ - Rock Tech Lithium Inc. (TSXV: RCK)
(OTCQX: RCKTF) (FWB: RJIB) (WKN: A1XF0V) ("Rock Tech" or the
"Company") is pleased to announce that it has received a
binding letter of intent (LOI) signed by the Minister for Economic
Affairs in Brandenburg,
Joerg Steinbach, for the grant of up
to 90 million Euros in subsidies for
the Guben Project. In addition, the Company is pleased to announce
that its application for federal funding from the German Railway
Authority is progressing well and is expected to lead to a
contribution of another 10 million
Euros in grants. This funding is expected to be provided
under the "Anschlussbahnförderung" and will support the company's
ambition to shift transports from road to rail, a crucial component
of the project's logistics concept.
Rock Tech's CEO Dirk Harbecke
comments: "These subsidies are a major milestone for us and a
big step towards the realization of the Guben Converter. Together
with the possible federal guarantees, we are targeting governmental
financial support of up to 500 million
Euros. In addition to these substantial subsidies, we have
signed a binding feedstock agreement with a leading lithium trading
house, C&D Logistics Group, for the procurement of raw material
for our converters and received the full construction and
operations permit approvals for Guben. I am very confident that we
will finalize the remaining financing steps for Guben in the coming
months."
The LOI confirms that after diligent vetting of the project by
the Investitionsbank des Landes
Brandenburg (Investment Bank of the State of Brandenburg, ILB) the state will
grant funding to Rock Tech, provided that the Company achieves full
financing for the Guben project. The subsidies will be provided as
part of the GRW funding scheme using the federal regulation
"Transformation Technologies". This underlines the significance of
Rock Tech's project not only for Germany, but also for the battery cluster in
Brandenburg. Signing and closing
of the grant notice is expected in Q4. The payout of subsidies will
occur over the construction period. In addition, Rock Tech is
progressing the application process for a federal guarantee to
cover 80% of debt financing—a decision is expected in the course of
2024.
Kerstin Wedemann, Chief Legal
& Operations Officer, adds: "Triggered by the positive subsidy
decision we will make significant progress over the next few
months. Next to the finalization of our debt and equity
discussions, we will announce our construction partner, start
ramping-up the team and initiate the construction
progress."
Rock Tech intends to build and operate Europe's first Lithium Converter with a
capacity of 24,000 tonnes of Lithium-Hydroxide-Monohydrate per
year. The refinery will be built in Guben, Germany and requires financing of
approximately 800 million Euros.
ABOUT ROCK TECH
Rock Tech's vision is to supply the electric vehicle and battery
industry with sustainable, locally produced lithium, targeting a
100% recycling rate. To ensure resilient supply chains, the company
plans to build lithium converters at the doorstep of its customers,
beginning with the Company's proposed Lithium Hydroxide Converter
in Guben, Brandenburg, Germany.
The second Converter is planned to be built in Red Rock, Ontario, Canada. Rock Tech Lithium
plans to source raw material from its own Georgia Lake spodumene project in the Thunder
Bay Mining District of Ontario,
Canada, and procure from other ESG-compliant mines.
Ultimately, Rock Tech's goal is to create a closed-loop lithium
production system. Rock Tech has gathered one of the strongest
teams in the industry to close the most pressing gap in the clean
mobility story. The Company has adopted strict environmental,
social and governance standards and is developing a proprietary
refining process to increase efficiency and sustainability
further.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE
EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF
THIS RELEASE.
CAUTIONARY NOTE CONCERNING FORWARD-LOOKING INFORMATION
Certain statements contained in this news release constitute
"forward-looking information" under applicable securities laws and
are referred to herein as "forward-looking statements". All
statements, other than statements of historical fact, which address
events, results, outcomes or developments that the Company expects
to occur are forward-looking statements. When used in this news
release, words such as "expects", "anticipates", "plans",
"predicts", "believes", "estimates", "intends", "targets",
"projects", "forecasts", "may", "will", "should", "would", "could"
or negative versions thereof and other similar expressions are
intended to identify forward-looking statements. In particular,
this press release contains forward-looking information pertaining
to expectations concerning the Guben Converter, including the
design and features of the Guben Converter, as well as the expected
costs, capital expenditures, timing and outcomes thereof;
statements regarding the Company's future plans, estimates, and
schedules relating to the Guben Converter, including the
anticipated timing of future activities taken in support of the
development thereof; the conditions of the grant of subisidies and
timing of the pay-out of subsidies by the ILB; Rock Tech's
potential financing arrangements; the expected economic performance
of the Guben Converter and anticipated production of battery-grade
lithium hydroxide and related processing methods employed; the
estimated capital and operating costs of the Guben Converter; the
anticipated timing and outcomes of a final investment decision,
construction activities and commissioning of the Guben Converter;
statements regarding the Company's sustainability and ESG related
goals and strategy, including the benefits and achievement thereof
and future actions taken by the Company in relation thereto;
expected regulatory processes and final outcomes; expectations
regarding the electric vehicle industry, including the demand for
and pricing of battery-grade lithium hydroxide and the benefits
therefrom, and the development of political and regulatory
frameworks especially in Germany
and the European Union; Rock Tech's opinions, beliefs and
expectations regarding the Company's business strategy, development
and exploration opportunities and projects; and plans and
objectives of management for the Company's operations and
properties. Forward-looking statements by their nature are based on
assumptions and involve known and unknown risks, uncertainties and
other factors which may cause the actual results to differ
materially from the forward-looking statements, including the
risks, uncertainties and other factors discussed in the Company's
most recent management's discussion and analysis and annual
information form filed with the applicable securities regulators.
No assurances can be given that any of the events anticipated by
the forward-looking statements will transpire or occur, and the
Company cautions the reader not to place undue reliance upon any
such forward-looking statements. The Company does not intend, nor
does it assume any obligation to update or revise any of the
forward-looking statements, whether as a result of new information,
changes in assumptions, future events or otherwise, except to the
extent required by applicable law.
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SOURCE Rock Tech Lithium Inc.