Alkemy Capital Investments (LON: ALK) says that its 100%-owned subsidiary Tees Valley Lithium is engaging ABG Sundal Collier ASA for a proposed $25m convertible bond and equity linked financing. The share price of the fully listed company jumped 71.8% to 73p, having been above 80p at one point.
Tees Valley Lithium is developing a lithium refinery project in Teesside. Planning and environmental permissions have been obtained and feedstock has been secured. The client base will be European vehicle manufacturers. The Tees Valley Lithium facility could have the capacity to supply all forecast UK automotive battery requirements by 2030 and have 35% of production available for export.
International trader Wogen will supply up to 200,000 tonnes of technical grade lithium carbonate feedstock each year. This should be enough to produce around 24,000 tonnes of battery grade lithium hydroxide and lithium carbonate equivalent.
The financing may be undertaken in more than tranche. The convertible bond will have a mandatory conversion mechanism into ordinary shares in Tees Valley Lithium if there is a flotation or trade sale. The conversion will be at a discount. Alkemy Capital Investments is hoping to list Tees Valley Lithium in 2025.