Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V:
ELBM) (“Electra” or the “Company”) is pleased to announce that
Mr. David Allen, CPA, CA, has been appointed as Chief Financial
Officer of the Company.
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Electra's refining complex, located north
of Toronto, Canada (Photo: Business Wire)
“David brings tremendous experience and a proven record of
strategic decision making. He will be a valuable contributor in
guiding our Company forward as we complete construction of the
first battery materials refinery in North America,” said CEO Trent
Mell. “Starting in 2024, electric vehicles containing components
from battery supply chain partners with 25% Chinese ownership will
no longer qualify for the $7,500 EV tax credit. This recent
development further underscores the strategic importance of our
asset in the supply chain onshoring strategy. David’s prior
experience in CFO roles will serve Electra well, as we finalize our
financing plans for the continent’s first cobalt sulfate
facility.”
A senior finance executive and business leader with over 30
years of experience, David has worked in the manufacturing, natural
resources, shipping, real estate and financial services industries.
He has extensive experience in CFO and senior finance roles with
complex international companies and Fortune 250 Canadian companies,
including TAAL, Canada Goose, Anaergia Inc. and Algoma Central
Corporation. Over his career, David has demonstrated a strong
ability to formulate and drive organizational strategies in a
fast-paced and dynamic environment.
“This is an exciting time to join Electra as it continues to
make solid progress with its battery supply chain onshoring
strategy,” said Mr. Allen. “I look forward to building on the
momentum and delivering on the growth strategy. Completion of the
financing package for construction of the cobalt refinery will be
one of our most important deliverables in the new year.”
Electra continues to make strong progress on its financing
strategy to complete the construction of North America’s only
battery grade cobalt refinery. Management anticipates receiving
funding from previous government commitments very early in 2024,
while it advances a larger multi-stakeholder funding solution to
complete construction of its hydrometallurgical refinery north of
Toronto.
The Company estimates that the current replacement cost of the
refinery complex is US$200 million and that approximately US$60
million will be required to complete construction. All long-lead,
custom-fabricated equipment is on site, and the facility was
operational throughout 2023 as a plant scale demonstration plant,
processing battery black mass.
Electra has an existing supply agreement with LG Energy Solution
which will see LG Energy Solution buy up to 80% of production from
Electra’s Ontario refinery during the first five years of
operation. Demand for the remaining production exceeds Electra’s
supply capabilities.
Approximately 80% of cobalt used in EVs is currently refined in
China. Inclusion of this material in U.S. electric vehicles will
make them ineligible for $7,500 of vehicle credits under the
Inflation Reduction Act.
David Allen holds a CPA and CA designation. David is also an
advisor with Hive Advisory Inc., a Canadian non-traditional
management consulting firm designed to develop and expand a network
of skilled and experienced, certified, independent and trained
management consultants. Mr. Allen will join the company on January
4, 2024. He succeeds Peter Park, who stepped in as CFO following
the departure of Craig Cunningham in June 2023 and has resigned to
pursue another opportunity. Mr. Park will assist with the
transition period. “Electra’s Board and Management would like to
thank Mr. Park for his dedication to the Company over the past
seven months and for his significant contributions over that
period,” said Mr. Mell.
Corporate Matters
Electra also announces that it intends to file a resale
registration statement with the United States Securities and
Exchange Commission. The registration statement will address resale
registration rights previously granted to holders of senior secured
convertible notes of the Company and will include common shares
issuable upon the conversion of the notes themselves as well as the
exercise of share purchase warrants previously issued to the
holders. The Company has received a waiver of the deadline for
registration from the holders of notes to mid-January in order to
facilitate filing of the resale registration statement.
In accordance with its long-term incentive plan, the Company has
granted $45,040 in Restricted Share Units (RSUs) to certain
officers, employees, and contractors of the Company. The RSUs will
be granted and priced on the closing price of the Company’s common
shares on the TSX Venture Exchange at end of business today. RSUs
are being issued in lieu of cash compensation otherwise payable to
Electra personnel and will vest in one year from the grant
date.
About Electra Battery Materials
Electra is a processor of low-carbon, ethically-sourced battery
materials. Currently focused on developing North America’s only
cobalt sulfate refinery and operating a black mass demonstration
plant, Electra is executing a multipronged strategy to onshore the
electric vehicle supply chain. Keys to its strategy are integrating
black mass recycling and nickel sulfate production at Electra’s
cobalt refinery located north of Toronto, advancing Iron Creek, its
cobalt-copper exploration-stage project in the Idaho Cobalt Belt,
and expanding cobalt sulfate processing into Bécancour, Quebec. For
more information please visit www.ElectraBMC.com.
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 Regarding Forward-Looking Statements
This news release may contain forward-looking statements and
forward-looking information (together, “forward-looking
statements”) within the meaning of applicable securities laws and
the United States Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical facts, are
forward-looking statements. Generally, forward-looking statements
can be identified by the use of terminology such as “plans”,
“expects”, “estimates”, “intends”, “anticipates”, “believes” or
variations of such words, or statements that certain actions,
events or results “may”, “could”, “would”, “might”, “occur” or “be
achieved”. Such forward-looking statements include, without
limitation, statements regarding the potential for additional
funding from the Federal government of Canada and the government of
Ontario and the quantum and terms thereof, adjustments of interest
rates on the occurrence of certain events which may impact the
attributes of the notes and warrants issued under the Note
Offering, including but not limited to a “green bond” designation,
and the effective conversion rate of the Notes and Warrants, which
is subject to adjustment in certain circumstances, the listing of
the Common Shares underlying the notes and the warrants issued
under the Note Offering on TSXV and NASDAQ, and the expected use of
proceeds of the Offering. Forward-looking statements are based on
certain assumptions, and involve risks, uncertainties and other
factors that could cause actual results, performance, and
opportunities to differ materially from those implied by such
forward-looking statements. Among the bases for assumptions with
respect to the potential for additional government funding are
discussions and indications of support from government actors based
on certain milestones being achieved. Factors that could cause
actual results to differ materially from these forward-looking
statements are set forth in the management discussion and analysis
and other disclosures of risk factors for Electra Battery Materials
Corporation, filed on SEDAR at www.sedar.com and with on EDGAR at
www.sec.gov. Other factors that could lead actual results to differ
materially include changes with respect to government or investor
expectations or actions as compared to communicated intentions, and
general macroeconomic and other trends that can affect levels of
government or private investment. Although the Company believes
that the information and assumptions used in preparing the
forward-looking statements are reasonable, undue reliance should
not be placed on these statements, which only apply as of the date
of this news release, and no assurance can be given that such
events will occur in the disclosed times frames or at all. Except
where required by applicable law, the Company disclaims any
intention or obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise.
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Trent Mell CEO info@ElectraBMC.com 1.416.900.3891
Electra Battery Materials (NASDAQ:ELBM)
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