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Clean Energy Metals – Dealing with the Supply Squeeze

#TM1- Technology Minerals

 

Clean Energy Metals – Dealing with the Supply Squeeze

Critical window of opportunity to create a circular ecosystem for battery metals

The failure of national governments to reach a major agreement at the COP27 Summit this year underlined the difficulty and urgency in reaching net zero. The lack of progress from the governmental side means that it falls to the private sector to provide meaningful solutions. Resource efficiency, energy, and mobility transition are crucial strategies to mitigate climate change. The focus is on reducing the consumption of resources, especially energy and raw materials.

While raw materials are the basis of our material world, their excessive consumption over recent decades has also contributed significantly to climate change. However, raw materials, and, in this case, especially metals, play a key enabling role for climate protection technologies, such as electro mobility, the hydrogen economy, and solar and wind power plants, and also for digitalisation. It is now vital to make the use of raw materials much more resource-efficient and to use them as purposefully as possible.

Source: https://link.springer.com/article/10.1007/s13563-022-00319-1

Source: https://www.alliedmarketresearch.com/battery-recycling-market

There is overwhelming evidence to show that advanced circular economy systems and sophisticated recycling technologies can build the backbone for the development of a resource efficient and sustainable society. Closed metal cycles are a key part of this equation, securing relevant parts of the raw material supply for high-tech products and reducing CO2 emissions in their production at the same time.

Many mineral-producing countries that supply critical minerals are politically unstable, making them risky to invest in and to rely on as a source. This underscores the importance of developing sources of domestic supply, which offers greater political stability, greater safety for workers, and can provide a pipeline of young talent. These provide a foundation for the sector to build innovative solutions in response to the demands of the green transition.

The sources of many critical minerals for energy use are much less diversified than for hydrocarbons and sometimes concentrated in geographies that are highly problematic from an environmental and social perspective, such the Congo. The Congo accounts for almost 80% of the global supply of cobalt, much of which comes from so called ‘artisanal mining’ with its attendant exploitative labour conditions and environmental degradation.

 

The Delivery Challenge

To deliver on the green revolution and minimise emissions that contribute to climate change, industries will need access to significant quantities of critical minerals.

If you can’t make it or grow it, you have to mine it, so there will be an inevitable growth in the mining of critical raw materials, such as lithium-containing minerals. Source: https://britishlithium.co.uk/lithium-market/

 

Source: https://www.alliedmarketresearch.com/battery-recycling-market

The production of lithium in 2030 will need to be 60 times the market size of 2015, if production of the internal combustion engine becomes a reality within the 2030 to 2035 timescale. Electric vehicles are the primary driver of lithium demand and given lithium’s unique properties of light weight and high energy storage potential, it is highly likely to remain the material of choice in non-stationary batteries, whether in wet electrolyte or solid-state form.

The sustainable supply of the battery metals cobalt, nickel, lithium, manganese, and copper is a decisive factor for the success of electro mobility. Given the current global availability of resources and the imminent tsunamic surge in demand to sustain surging production levels recycling and reuse of batteries represents an increasingly important component of the future raw material supply. An effective circular economy for batteries can only be achieved if—in contrast to the current situation with many consumer goods — spent batteries can be fed into a comprehensive, technically advanced recycling network to re-enter the supply chain.

 

 

Source: https://www.alliedmarketresearch.com/battery-recycling-market

A London listed company Technology Minerals (LON: TM1) is seeking to meet these challenges head on. Billed as the UK’s first stock market listed ‘circular economy’ company, Technology Minerals combines a fast-growing lead acid and lithium-ion battery recycling network through its wholly owned subsidiary Recyclus Group with a series of battery metal mining projects sited strategically around the globe. Technology Minerals Chairman Robin Brundle explains: “The strategy of Technology Minerals is to build out its IP protected battery processing capacity in Europe while evaluating its portfolio of early-stage critical minerals projects. The current European market for Li-ion and lead-acid batteries totals 1.2mte pa of which some 72% are lead-acid and of which the automotive market consumes 70%. Within automotive, Li-ion currently accounts for just 10% but that is set to grow exponentially in line with increased EV penetration.”

The global recycling batteries market size was valued at $11.1 billion in 2020 and is expected to reach to $66.6 billion by 2030.

While EVs don’t emit CO2, lithium-ion batteries are made from raw materials, including lithium, cobalt, and nickel. With the coming supply squeeze, the mining of many of these materials can also raise ethical and environmental concerns.

Currently, there are very few lithium-ion battery recycling centres, due in part to lithium-ion batteries being both costly and difficult to recycle. According to some estimates, the current recycle rate is less than 5%. According to a recent Wired article, “While you can re-use most parts in EVs, the batteries aren’t designed to be recycled or reused.” And if the batteries are disposed into landfill sites, the battery metals can contaminate both water and soil.

Source: https://www.alliedmarketresearch.com/battery-recycling-market

 

The Size of the Problem

  • Global stock of electric vehicles (EVs) could reach 245 million units by 2030, according to the International Energy Agency.
  • While EVs emit less CO2, their batteries are tough to recycle.
  • Ming cobalt, lithium, and nickel can raise ethical and environmental concerns.
  • Creating a circular supply chain by recycling the batteries’ raw materials will be vital in reducing their environmental impact.

Source: https://www.weforum.org/agenda/2021/05/electric-vehicle-battery-recycling-circular-economy/

Lithium-ion batteries are also used for 90% of grid energy storage around the world, especially for wind and solar energy. Initiatives such as the EU’s plan to reduce its dependence on Russian natural gas by two-thirds, which relies in part on accelerated generation of renewable energy, will significantly increase demand for battery storage.

Source: https://www.bcg.com/publications/2022/the-lithium-supply-crunch-doesnt-have-to-stall-electric-cars

The sustainable supply of battery metals such as lithium, cobalt, nickel, manganese, and copper is a decisive factor for the success of electro mobility and clean technologies. The current targets set by governments at home and abroad for the switch to EVs and clean technology leaves recycling and reuse of batteries as the only practical step available to meet demand based on current forecasts for sourcing new battery metal production hubs. This circular economy for batteries can only be realised if—in contrast to the current situation with many consumer goods—there is a global network to collect spent batteries allied to large scale, high-quality recycling facilities.

 

Does the UK offer practical battery metal / clean-tech project opportunities?

Accelerating the shift to zero-emission vehicles is a key element if the 68% reduction in carbon emissions targeted by the Government by 2030 is to be achieved. The UK’s EV market is growing rapidly, with EV registrations increasing by approximately 173% from 2019 to 2020.

Current projections state that approximately 1.4 million EV battery packs will be coming to the end of their “useful life” every year by 2040. This roughly equates to 203,000 tons of batteries for recycling annually (based on a 60% recycling rate) at that point.

The UK currently lacks industrial capacity for lithium-ion battery recycling, resulting in the current costly reliance on mainland Europe when supplying batteries for material recovery after their useful life. With the average value of materials contained in an end-of-life automotive pack in 2018 being £1,200 for Battery Electric Vehicles (BEVs) and £260 for Plug-in Hybrid Electric Vehicles (PHEVs), there is a huge opportunity in the UK to recycle lithium-ion batteries.

Source: https://hvm.catapult.org.uk/news/automotive-battery-recycling-an-opportunity-the-uk-cant-afford-to-miss/#

Technology Minerals Chairman Robin Brundle comments; “The automotive sector is doing its part to pivot to all-electric, but it needs an effective and competitive ecosystem that will be largely self-sustaining, with job creation, skillset expansion and support for COP27 goals, both domestically and abroad, coming to the fore. This way, our automotive industry will continue to advance our extraordinary UK R&D and engineering skillsets so that they are fit for purpose well into the next sustainable decade.  Recycling is forecast to only be able to provide 22% of the supply that’s needed to power the transition. 78% will need to be extracted or brought in from elsewhere and each continent is facing this challenge – with many places creating barriers to export.”

 

Right Under Our Feet?

The UK has a rich history of mining, yet exploration and mine development have been neglected since WWII, with no new metalliferous mine being successfully built for 45 years.

Large-scale mining and modern processing can extract minerals that were not previously economic, safely, and with improved protection of the environment and community. New deposits could be found near old, narrow-veined, high-grade mines or in unexplored areas. Modern environmental controls, surveys, management, and remediation techniques can ensure that mineral production limits environment impact.

Technology Minerals Chairman Robin Brundle points out that the markets are very much aware that recycling alone will not generate sufficient raw materials and believes an ethical mining programme is critical: “We were once a prolific mining nation and those mines are still there – dormant, but in 2022, many appear to be economic once again due to the advancement in technology and commodity prices.”

Some steps have already been taken in this direction. After listing on London’s AIM market, Cornish Lithium #CUSN has assembled a large portfolio of mineral rights in Cornwall and has begun exploration for lithium-rich geothermal fluids.

 

Gigafactory Investment is Coming to the UK

There is progress in at least one area of the electro mobility and clean-tech supply chain: the British government is in talks with several companies to build gigafactories in the UK. Envision AESC has announced a new gigafactory next to its facility in Sunderland, while AMTE Power has also announced plans for a megafactory in Dundee. Further gigafactory and several supply chain announcements are expected in the coming months.
These developments are vital in maintaining a strong and prosperous automotive industry in the UK. On top of the global challenges from the COVID-19 pandemic, the war in Ukraine, and the rising costs of living, the challenges facing the UK automotive industry are very real and specific. 

“We all need not one but several gigafactories in the UK,” said Brundle. “Not having the ability to create batteries at home puts the future of the UK automotive sector in jeopardy—and the 823,000 direct and indirect jobs that go with it.  We need to secure more lithium for the UK and Europe, to create a flexible, sustainable supply chain that could also include developing domestic sources of key battery metals.”

 

How the Macro Backdrop and Supply Squeeze Will Make Recycling Increasingly Important

The Committee for Climate Change has suggested that 50% of new car and van sales would be battery electric or plug-in hybrid by 2035. Bringing forward deadlines for zero emission vehicles means we are now looking at 100% of new cars and vans being zero emission at the tailpipe by 2035.

The supply crunch will not hit immediately. Even though the price of lithium has surged more than tenfold over the past two years, there’s enough capacity to meet anticipated demand until around 2025—and potentially through 2030 if enough recycling operations come online. After that, chronic shortages are expected. Even assuming that all the new lithium-mining projects that the industry currently regards as probable or possible resources go into operation, as well as a significant expansion of lithium-recycling projects, lithium supply in 2030 is expected to fall around 4% short of projected demand, or by around 100,000 metric tons of lithium carbonate equivalent (the processed form of raw lithium). By 2035, that supply gap is projected to be acute—at least 1.1 million metric tons, or 24% less than demand.

 

Source: https://www.bcg.com/publications/2022/the-lithium-supply-crunch-doesnt-have-to-stall-electric-cars

It is more vital than ever that metals are recycled responsibly and effectively. This will:

  • Contribute to the conservation of raw materials, complementing the primary supply of important and partially critical metals for our society.
  • Significantly improve supply security, especially for many technology metals which currently are imported from outside Europe. Many metal imports derive from regions with higher geopolitical risks, hence making the European economy vulnerable to supply disruptions. Exploiting the European “urban mine” built from our end-of-life (EoL) products, infrastructure, and other residue streams reduces import dependence, improves the resilience of crucial value chains, and hence supports economic activities and jobs in Europe. The need for more supply chain resilience has become even more obvious in the context of the Covid-19 pandemic and the Ukraine war.
  • Contribute to cushion volatile metal prices as the additional supply of recycled metals can help to overcome demand–supply imbalances and increases the number of metal sources beyond the primary producers.
  • Reduce the CO2 footprint and overall environmental impact of raw materials supply. If taking place in state-of-the-art recycling facilities, in most cases the energy efficiency (per kg of metal) is better and the impact on water, air, soil, and biosphere is considerably lower than in mining operations. The main reason for this is that the metal concentration in most products is much higher than in geological deposits.
  • Be one pillar of responsible sourcing by providing transparent and clean supply chains.
  • Protect the environment as non-recycling or landfilling of end-of-life products, such as batteries, can emit hazardous substances.

 

How the Technology Minerals #TM1 Blueprint for Lithium-ion and Lead-acid Battery Recycling Will Be a Vital Part of the Supply Chain

The battery recycling market is growing at an accelerated rate, driven by automotive and industrial sectors transitioning to more environmentally friendly and sustainable electric solutions. The UK needs industrial-scale battery recycling technologies. There is currently no major UK capability to recycle lithium-ion batteries. Technology Minerals’ plants in Tipton and Wolverhampton aim to provide a national capability to recycle lead-acid and lithium-ion batteries. As a first-mover in the battery recycling sector, the company expects to open 10 plants over the next six years, with its innovative IP in the lithium-ion sector a driving factor in the expansion strategy.

Technology Minerals has developed a unique frontend process that can safely break open Li-ion batteries which are not suitable for repurposing, to recover the battery mineral rich ‘black mass’ they contain as well as other battery components. This is the only process currently capable of handling all five li-ion battery compositions simultaneously on an industrial scale. The solution is also modular and can be easily built on-site at OEMs, minimising transportation costs.Technology Minerals has also developed a significantly improved process to recover the lead from end-of-life lead-acid batteries as well as recovering the acid for re-use as electrolyte or for the manufacture of fertiliser or gypsum, subject to the preferred economics.

 

Conclusion

As the world races to decarbonise, industry needs a secure source of critical minerals to fuel the transition. Brundle said, “The only ways this can be achieved is creating new mines, opening old mines, and building a secondary source of supply through recycling.”

It is necessary to dramatically escalate new production of battery metals to allow industry to make the green switch. This must be coupled with the implementation of a circular ecosystem so that each mineral mined is used to its full potential. The urgency and scale of the transition means that nothing less than a maximal approach will suffice.

On the strategic level, there are two temporal considerations. Brundle explained, “We have a very narrow window of opportunity so there is a necessity to take action to avert the incoming supply crunch in the short-term, but there is also a longer-term need to create a sustainable, circular ecosystem for battery metals.” Urgent action is required to avoid the immediate shortfall of supply, but there is also a wider structural shift to circularity needed to ensure a decarbonised economy can continue to grow sustainably.

 

Technology Minerals #TM1 – Resignation of Auditor

Resignation of Auditor 

Technology Minerals Plc (LSE: TM1), the first listed UK company focused on creating a sustainable circular economy for battery metals, announces that Jeffreys Henry LLP have notified the Company of their resignation of auditor of the Company. 

Jeffreys Henry LLP has advised the Company that it has decided to withdraw from the Public Interest Entity (“PIE”) audit market. Technology Minerals is classified as a PIE due to its Standard Listing on the London Stock Exchange’s Main Market. 

Jeffreys Henry LLP has confirmed that there are no circumstances connected with their resignation which they consider should be brought to the attention of the Company’s members or creditors in accordance with Section 519 of the Companies Act 2006. 

The Board is in discussion about appointing a new auditor and a further announcement will be made shortly.

#TM1 Technology Minerals Plc- First lead acid batteries recycled at Tipton

Technology Minerals Plc (LSE: TM1), the first listed UK company focused on creating a sustainable circular economy for battery metals, is pleased to announce that Recyclus Group Ltd (“Recyclus”), its 49% owned battery recycling business, has processed 19 tonnes of end-of-life batteries at its battery recycling plant in Tipton, West Midlands.  

 

Highlights

·    First 19 tonnes of batteries manually processed and recycled into 16.5 tonnes of lead, lead plate and other recovered materials

·    Facility is licenced for manual recycling activities while awaiting Environmental Agency (“EA”) approval for automated industrial-scale processing

·    Process recycles the entire battery into separate constituent parts to recover lead, acid, and plastic materials, which can then be reused in a wide range of industries

·    Recyclus is in discussions with several potential buyers for the recycled materials and will update the market in due course

Recyclus plans to scale up its operations at Tipton while preparing to commence industrial-scale automated processing once it has received the final approval from the Environmental Agency.

As announced in September 2022, Recyclus received Approved Battery Treatment Operator (“ABTO”) status at the Tipton plant, granting approval to begin manual processing of lead-acid batteries at the site. Under ABTO status, Recyclus is authorised to produce up to 15,000MT per annum of lead and store up to 300MT of inbound stock at any one time on-site. This enabled phase one of production to begin, with the second phase set to begin once final approval is granted by the EA.

Robin Brundle, Chairman of Technology Minerals, said: “We are delighted to process the first batch of end-of-life batteries as Recyclus looks to ramp up its operations at the recycling plant in Tipton. Our process enables the recycling of spent batteries to recover lead, acid, and plastic materials to be repurposed back into a range of industries. We have seen strong demand for the recovered materials and look forward to securing first sales and generating cashflow at Tipton. Recyclus is in discussions with multiple parties regarding the sale of the recycled material and will update the market in due course.”

As announced on 19 October 2022, the Company signed binding Heads of Terms to acquire the remaining issued share capital of Recyclus (the “Proposed Transaction”). The Company will update shareholders as to progress made in relation to the Proposed Transaction as and when appropriate.

Enquiries

Technology Minerals Plc

Robin Brundle, Executive Chairman

Alexander Stanbury, Chief Executive Officer

+44 (0)20 4582 3500

Oberon Investments Limited

Nick Lovering, Adam Pollock

+44 (0)20 3179 0535

Arden Partners Plc

Ruari McGirr

+44 (0)207 614 5900

Gracechurch Group

Harry Chathli, Alexis Gore, Amy Stupavsky

+44 (0)20 4582 3500

 

 

Technology Minerals Plc 

 

Technology Minerals is developing the UK’s first listed, sustainable circular economy for battery metals, using cutting-edge technology to recycle, recover, and re-use battery technologies for a renewable energy future. Technology Minerals is focused on extracting raw materials required for Li-ion batteries, whilst solving the ecological issue of spent Li-ion batteries, by recycling them for re-use by battery manufacturers. With the increasing global demand for battery metals to supply electrification, the group will explore, mine, and recycle metals from spent batteries. Further information on Technology Minerals is available atwww.technologyminerals.co.uk   

New Vox Markets Podcast out now discussing: First Class Metals #FCM, Technology Minerals #TM1, Revolution Bars #RGB

VOX

Alan GreenCEO of Brand Communications talks about the football world cup, including the upcoming England vs Wales and discusses the following companies:

– First Class Metals #FCM

– Technology Minerals #TM1

– Revolution Bars #RGB

https://www.voxmarkets.co.uk/articles/alan-green-talks-about-revolution-bars-first-class-metals-technology-minerals-8daf582

Technology Minerals #TM1 – Notice of AGM

 

Technology Minerals Plc (LSE: TM1), the first listed UK company focused on creating a sustainable circular economy for battery metals, gives notice that the Annual General Meeting of the Company (“AGM”) will be held at 15:30 GMT on Monday 19 December at the Courthouse Hotel London, 19-21 Great Marlborough Street, London, W1F 7HL. 

The Notice of AGM, which contains a report from Chief Financial Officer, James Cable, regarding progress of the proposed acquisition of Recyclus Group Limited, and form of proxy have been posted to shareholders and will be made available on the Company’s website: www.technologyminerals.co.uk

Enquiries

Technology Minerals Plc

Robin Brundle, Executive Chairman

Alex Stanbury, Chief Executive Officer

+44  (0) 20 4582 3500

Oberon Investments Limited

Nick Lovering, Adam Pollock

+44 (0)20 3179 0535

Arden Partners Plc

Ruari McGirr

+44 (0)207 614 5900

Gracechurch Group

Harry Chathli, Alexis Gore, Amy Stupavsky

+44  (0) 20 4582 3500

Technology Minerals #TM1 – Exploration Update on the Asturmet Cu-Co-Ni Project, Asturias, NW Spain

Technology Minerals Plc (LSE: TM1), the first listed UK company focused on creating a sustainable circular economy for battery metals, is pleased to announce initial results from a lithogeochemical programme and targeting studies at its 100%-owned Aramo Copper-Cobalt-Nickel (“Cu-Co-Ni”) Project in Asturias, NW Spain. 

Highlights

·     First results from new lithogeochemical sampling at the Aramo Mine on the St. Patrick licence confirm high-grades of cobalt and copper, with associated nickel mineralisation

·    Grab sampling across multiple mineralized veins and alteration zones have confirmed the style and tenor of mineralisation and have reported assays ranging up to 1% – 28% copper, 0.1 – 1.88% cobalt and 0.1 – 1.68% nickel.

·    Lithogeochemical sampling was completed within four accessible working levels at the historic Aramo Cu-Co-Ni mine in Asturias.

·    A total of 205 rock samples have been collected and analysed at ALS Laboratories, Loughrea, Ireland.

·    This work has formed the basis of a broad characterisation study of extensive zones of alteration and mineralisation which are present and clearly observed within parts of Levels 3 and 4 of the mine.

·    A 3D laser survey has also been completed at the Aramo Mine on the historical Levels 3 and 4. This will provide a 3D model framework of the mine workings and allow for systematic and more intensive underground mapping and sampling on these levels.

·    This work will lead to a better understanding of the geological and mineralogical model at Aramo, and in turn form the basis of 3D visual planning for diamond drilling targeting unmined mineralization as well as extensions to the main zones.

·    Mine archive searches have produced targeting data associated with areas outside of the Aramo mine on the St. Patrick Licence as well as targets associated with several other of the Company’s pending licence applications.

Asturmet Project

The Company holds 100% of the Aramo Project through its 100% wholly-owned subsidiary, LRH Resources Limited (“LRHR”), and LRHR’s 100% wholly-owned subsidiary Asturmet Recursós S.L. (“Asturmet”). The Asturmet Project consists of eight exploration permits or P.I. (Permiso del Investigación): St. Patrick (P.I. 30858), St. Andrew (P.I. 30869), St. David (P.I. 30870), Astur A (P.I. 30864), Astur B (P.I. 30865), Astur C (P.I. 30866) and Astur D (P.I. 30868) along with new application Astur F (P.I. 30880). The licences cover a total area of approximately 535km2. The St. Patrick licence (which covers the historic Aramo Mine), was issued to Asturmet in June 2018. The remaining licences are in the application process with the Spanish Mining Administration, with St. Andrew and St. David licences in the final stages of issuance.

Aramo Mine Lithogeochemical Sampling

A total of 205 samples have been collected during a series of underground sampling programmes. These samples were collected as part of a preliminary mapping and lithogeochemical characterisation study to help determine the distribution and nature of the alteration and mineralisation within different parts of the accessible mine. At this time the most accessible and safest access is on Levels 3 and 4 (155 samples) with restricted access on Level 1 and 2 (46 samples). The Socavon at level 0 (4 samples) does not show significant alteration or mineralisation being positioned within the footwall of the system. Each of these areas have been visited and the number of samples collected are summarised below in Table 1.

Level ID

Gallery/Stope

Samples

Level 0

Socavon Adit

4

Level1

Portal Spoil Surface

14

Main Adit

7

Level 2

Portal Spoil Surface

8

Main Adit

9

Side Gallery

8

Level 3

Portal Spoil Surface

1

Arrebolleu Stopes

6

San Felipe Stope B

40

San Felipe Stope C

13

San Felipe Stope D

2

San Vincente Zone

4

Breccia Corner

3

Level 3.5

San Felipe Stope A

20

Level 4

Metastur Pit

2

Portal Spoil Surface

11

Pyrite Vein West

13

Horse Head Gallery

10

Sta. Barbara Gallery

8

San Pedro Gallery

22

Total Samples

 

205

Table 1: Lithogeochemical sampling at Aramo

The samples were collected from as many of the historically reported mineralised veins (filons) as are currently accessible. At the highest point on Level 4 there are 5 main veins called Metastur, Vein 5 (Horsehead and Pyrite veins) Santa Barbara and San Pedro. On level 3 the main veins that are accessible are San Felipe and to a lesser extent San Vincente.. It should be noted that the samples collected are a combination of both bedrock/sidewall outcrop, collapsed sidewall material that lie below its source location, and float material from spoil both underground and at surface near the portal. These samples were collected specifically as a method of determining the broadest range and distribution of both alteration, mineralisation and associated grade. The next phase of work will include detailed underground mapping and channel sampling to add to a higher degree of grade distribution clarity to the extensive zones of alteration and mineralization seen underground. 

Results from Level 4 

Sampling on Level 4 has confirmed broad zones of pale orange partially dolomitized limestone of the mountain limestone unit, these broader zones tend to be relatively lower in grade than the more discrete and significantly higher-grade mineralised zones which align with the known veins which are partially worked at this level (Figure 1). The primary veins underground are Vein 5, Sta. Barbara and Sn. Pedro. Results from material across all the sampled zones at this level includes material assaying up to 1% – 16% copper, 0.1 – 0.42% cobalt and 0.1 – 1.16% nickel.

Diagram, schematic Description automatically generated

Figure 1: Aramo mine primary sampled areas on Level 4.

Results from Level 3 and 3.5

Sampling on Level 3 has also confirmed broad zones of pale orange partially dolomitised limestone of the mountain limestone unit, these zones are both more extensive and more connected than Level 4 and clearly exhibit strong structural control relating to several different fault orientations as well as an apparent relation to stratigraphic control. Level 3 alteration and mineralisation also appears to be of a generally higher tenor but still shows variable grade distribution within the alteration zones and veins. There is more underground development on level 3 and the main accessible zone is called San Felipe which is intersected at both Level 3 and level 3.5 across four distinct working areas termed Stope A to D, these are the main areas sampled. Results from material across all the sampled zones at this level includes material assaying up to 1% – 28% copper, 0.1 – 1.88% cobalt and 0.1 – 1.68% nickel.

Results from Level 2

Sampling on Level 2 is restricted to one of the main adits and one side gallery, when the mine closed the company closed off some of the access by piling up waste material to prevent access to the main zone of mineralisation which lies vertically below that seen on levels 3 and 4. Limited access at this time has so far restricted underground sampling to some peripheral alteration and mineralisation outside of the main historically mined areas. Results from material across all the sampled zones at this level includes material assaying up to 1% – 19% copper, 0.1 – 1.38% cobalt and 0.1 – 0.55% nickel. 

Results from Level 1 

Sampling on Level 1 is also restricted to one of the main access adit and therefore sampling has also been restricted to some minor peripheral alteration and mineralisation. Results from material across all the sampled zones at this level includes material assaying up to 0.5% copper, 0.1 % cobalt and 0.1% nickel. Access further into the main body of the mine will be required in order to reach the main mineralised zones. 

Other areas 

The Socavon is a lower-level footwall access haulage drift that was not connected to the higher levels of the mine during the active mining period at Aramo. The 1km long adit appears to have been designed to undercut the main mineralised zones within the unmineralised footwall of the mine.

All samples collected  have followed a strict sampling and chain of custody process and were analysed by ALS Laboratories in Loughrea, County Galway, Ireland. Samples were analysed by four-acid ICP-AES analysis.

Underground Laser Survey at Aramo Mine

The main period of operation of the Aramo mine was between 1948 and 1955 with peak copper production between 1953 and 1955 before final closure in 1957. An extensive search for historical mine records, underground plans and technical data has to date yielded a limited number of  underground maps of variable quality and of relatively little use in the modern context for recording ongoing underground mapping and sampling.

Therefore, the company commissioned a 3D underground laser survey at Aramo which was carried out Sociedad Asturiana de Diversificación Minera (SADIM) a part of Grupo Hunosa, in association with Ingeniero Oscar Diez Regil.

The initial survey was completed in all of the main accessible parts of the mine on levels 3 and 4 (Figures 2 and 3).  The preliminary results exceeded expectations both in quality and detail (Figures 4 and 5). The maps that can now be produced from this work have facilitated the accurate georeferencing of all geological and geochemical data collected to date and will form the basis of the next phase of detailed mapping and systematic sampling.

The primary purpose of the survey and associated geological mapping work is to enhance the understanding of the geometry of the mineralising system at Aramo and aid in the planning of surface diamond drillholes targeting both known mineralised zones and potential unmined extensions. This will include verifying the non JORC compliant historically reported “recognised reserves” (detailed below), on mapped structures, both proximal to the mine and also westwards under the plateau.

Diagram Description automatically generated

Figures 2 and 3: Showing the full surveyed areas on parts of levels 3 and 4 

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Figures 4 and 5: Showing detail of areas at the level 4 portal (left) and the adit at the junction with San Pedro Vein on level 4. 

Mine Archive Review

A search for data related to the Aramo Mine and the surrounding licenced areas has been ongoing. Very little data appears to have survived the intervening 70 years since the area was actively producing copper from these areas. However, mine records examined have revealed multiple areas that were licenced at different times across what is now the St. Patrick Licence and which were being targeted with exploration proximal to the Aramo mine for reported copper (and associated cobalt/nickel) occurrences. The same sources show similar historically licenced areas on targets across several of the other licence applications that the Company has with the Mining administration. A full assessment of these newly discovered data are ongoing and will be reported on in due course.

Local Geology

The Aramo Cu-Co-Ni Project is classed as an epithermal carbonate-hosted deposit and lies within the western closure of the Cantabrian Orocline Fold and Thrust Belt. The Aramo Mine is located within the Aramo “Caliza de Montana” stratigraphic unit comprising of organic rich limestones. Mineralisation is broadly confined to wide alteration zones with more localised east – west orientated high-grade veins and stockwork mineralisation. The alteration zones, which are themselves pervasively mineralised, are interpreted to form extensive “pipe-like” bodies with significant vertical development at major fault intersection planes. These zones develop laterally outwards along individual faults creating the so called “Filon” zones. Lower angled stratigraphic bedding within the host limestones within the pipelike zones appear to create flatter zones or lenses of alteration and mineralisation with a 30 – 40-degree orientation dipping westwards.

The primary sulphide mineralisation comprises of copper-nickel-cobalt sulphides with three recognised stages of mineralisation accompanied by dolomite and quartz precipitation. An important supergene stage postdates the sulphides and is associated with calcite gangue. Mineralisation is considered to be Permian in age. 

The Aramo copper-cobalt mine on the St. Patrick licence was the main mine in the area and ceased production the late 1950s. The mining operations were on a relatively small scale, and the records for production, grades, development, and geology were poorly kept. One surviving record widely quoted estimated that approximately 200,000 tons of 1-20% Cu, 1-3% Ni and 1-3% Co ore were extracted from the Aramo mine, with at least 400,000 tonnes reported as (for the time non-JORC compliant) “recognised reserves” in a subvertical orebody formed by veins and breccia pipes of 150m by 40-50m and 600m deep. This has not yet been verified, but it is expected that the ongoing work leading to a comprehensive drilling programme in due course will work towards establishing coherent mineralised zones both within the mine area and exploration targets within potential satellite zones/filons that are structurally and stratigraphically associated with the Aramo Fault both to the west and south.

The Aramo Mine

The Aramo mine was most recently in production from 1947 and ceased production in 1957. It has remained dormant for the last 65 years. The mine has several distinct mineralised zones with extensive alteration and associated Cu-Co-Ni mineralisation at a number of levels over a known vertical extent of 530m whilst westwards, there lies a further 200m of vertical prospective stratigraphy above the mine and to the west below the plateau.

Currently there are four primary levels termed Level 1 (995m O.D.), Level 2 (1085m O.D), Level 3 (1150m O.D) with a small sub level and stope termed Level 3.5 (1155m O.D.) and Level 4 (1180m O.D.). Access to-date has been primarily on Level 4 and parts of Level 3 with only limited access completed so far on Levels 1 and 2. The Socavon termed Level 0 is a footwall adit approximately 1km in length and is located at an elevation of 703m O.D. close to the historical mine processing plant. The only mine plans in existence from between 1947 and 1957 illustrate the mine planned development only have been digitally captured and geo-referenced and are represented in Figures 6 and 7 below. 

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Figure 6: Aramo mine Plan 1947 and 1957 showing the four primary working levels (Plan).

 

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Figure 7: Aramo mine Plan 1947 and 1957 showing the four

primary working levels (oblique view west).

Alex Stanbury, Chief Executive Officer of Technology Minerals, said: “We are pleased the initial results from our sampling survey at the historic Aramo mine within the St. Patrick licence has confirmed high grade Copper-Cobalt-Nickel mineralisation. In the coming months we plan to expand our exploration campaign which will help us continue to gain a better understanding the full potential of the project.  The Asturmet Project forms part of our wider strategy to move forward and advance multiple exploration campaigns across our portfolio of mineral resource projects focused on cobalt, copper, nickel, manganese, and lithium.”

Competent Person

All scientific and technical information in this announcement has been prepared under the supervision of EuroGeol Vaughan Williams M.Sc. P.Geo (a Principal of Aurum Exploration Services who currently provides exploration services to LRHR), and a “qualified person” within the meaning of National Instrument 43-101. Vaughan Williams is also company secretary of LRHR and a Director of LRHR’s Spanish subsidiary Asturmet.

The Directors of the Company accept responsibility for this announcement.

For further information please visit www.technologyminerals.co.uk, @TechnologyMinerals on Twitter, or contact:

Technology Minerals Plc

Alex Stanbury, Chief Executive Officer

Lester Kemp, Chief Operating Officer

Wilson Robb, Chief Technical Officer

+44 (0)20 4582 3500

Oberon Investments Limited

Nick Lovering, Adam Pollock

+44 (0)20 3179 0535

Arden Partners Plc

Ruari McGirr

+44 (0)207 614 5900

Gracechurch Group

Harry Chathli, Alexis Gore, Amy Stupavsky

+44 (0)20 4582 3500

About Technology Minerals Plc

Technology Minerals is developing the UK’s first listed, sustainable circular economy for battery metals, using cutting-edge technology to recycle, recover, and re-use battery technologies for a renewable energy future. Technology Minerals is focused on extracting raw materials required for Li-ion batteries, whilst solving the ecological issue of spent Li-ion batteries, by recycling them for re-use by battery manufacturers. With the increasing global demand for battery metals to supply electrification, the group will explore, mine, and recycle metals from spent batteries. Further information on Technology Minerals is available at www.technologyminerals.co.uk  

Technology Minerals #TM1 – Leinster Project field geochemical exploration programme is advancing on schedule and confirms a well-defined spodumene pegmatite boulder train on Prospecting Licence Area 1597

Technology Minerals Plc (LSE: TM1), the first listed UK company focused on creating a sustainable circular economy for battery metals, is pleased to announce field exploration work is advancing on schedule on the North-West Leinster Lithium Project, with a particular focus on Prospecting Licence Area (“PLA”) 1597.

Highlights:

  • Field geochemical exploration programme advancing on schedule.
  • The first target area in the vicinity of the historical spodumene bearing trench at Knockeen East is being targeted by a closely spaced deep overburden sampling programme.
  • The area is also undergoing intensive prospecting which is consolidating the extent of the spodumene pegmatite boulder train as well as significantly enhancing the resolution of the dispersion zone and therefore the target potential drill target areas.
  • A total of 46 rock samples and 233 deep overburden samples along with 13 QAQC samples have been collected to-date and submitted to ALS Laboratories for analysis.
  • Deep overburden sampling and prospecting is continuing across the survey grid area, and will migrate to the second target area at Carriglead in due course.
  • This work is being carried out to help determine specific areas for follow up drilling.

Field Exploration Programme update

The current phase of detailed exploration work is centred on an where a forty-year-old historical report described a trench excavated at Knockeen Townland on PLA 1597 as having uncovered in bedrock, a 1.8m wide spodumene-bearing pegmatite dyke. However no detailed laboratory assays or geological maps of the trench were reported at that time. Historical prospecting around the trench also reported the occurrence of up to 10 large boulders of spodumene bearing pegmatite at surface some of which may have come from the pegmatite dyke historically intersected in the trench.

The current exploration programme is utilising a well tried and tested geochemical exploration technique called Pionjar or Deep Overburden Sampling. This technique uses equipment to penetrate the soil and glacial till down to the bedrock interface where a sample is collected for analysis. The depth of the sampled material varies between 1m and 5m depth at Knockeen and is much more accurate than sampling nearer to surface soil material as the sample point is closer to the bedrock source of the lithium bearing pegmatites and helps to remove the effects of geochemical dispersion at higher levels in the overburden profile.

The first part of the programme will be carried out in two stages commencing on an initial closely spaced grid (Grid 1) over the area of the historical trench, which will be completed on 25m spaced lines with samples collected at 15m intervals or stations. This will be followed by Stage 2 extending westwards following the trend of the spodumene pegmatite boulder train and termed Grid 2 (in progress) this grid will cover a larger area at 50m line spacing and 30m sample intervals (Figure 2).

The field programme commenced in October 2022 and will continue to late November 2022. To date, a total of 233 deep overburden samples along with 13 QAQC samples have been collected and submitted to ALS Laboratories for analysis, results are pending.

In association with the deep overburden sampling a detailed programme of prospecting is ongoing and to-date 46 rock samples have been collected and submitted to ALS Laboratories for analysis. Subject to any delays in the analysis of the samples, the results for the entire programme are expected to be processed and returned by the end of 2022.

Once the two grids at Knockeen are completed the team will move to the second target area at Carriglead two kilometres to the south where a similar historically reported and since verified spodumene pegmatite boulder train has been identified.

A few people working in a field Description automatically generated with low confidence

Photo 1: Deep Overburden sampling (top) and newly discovered Spodumene pegmatite samples from Knockeen (bottom)

Target focus PLA 1597

The licence, which was awarded to Technology Minerals’ wholly owned subsidiary LRH Resources Limited (“LRH”) on 22 March 2022, forms part of the Company’s Leinster Property exploration block, which is operated under an exclusive Option and Earn-in agreement with Global Battery Metals Ltd (“GBML”), (TSXV: GBML; OTCQB: REZZF; Frankfurt: REZ) with no project expenditure required by the Company.

PLA 1597 was identified as prospective for lithium pegmatite potential by LRH and its exploration consultants Aurum Exploration Services (“Aurum”) following detailed desktop studies which outlined two proximal areas of spodumene-bearing pegmatite reported by previous operators in the mid-1970s. Initial prospecting confirmed a high grade spodumene bearing pegmatite boulder dispersion train during a due diligence prospecting survey at two localities (Figure 1). Results from the six samples returned values between 0.70% Li2O to 2.95% Li2O at Knockeen and Carriglead and have been reported previously.

Alex Stanbury, CEO of Technology Minerals, said: “We are pleased the exploration campaign at the Leinster Project in Ireland is progressing well, where previous work has confirmed high-grade lithium in spodumene pegmatites.  The current programme, which is expected to be completed by the end of November, will help to determine target areas for follow up drilling and we look forward to receiving the assay results in due course.” 

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Figure 1: Map showing location of prospecting samples at Knockeen and Carriglead

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Figure 2: Deep Overburden Sampling programme PLA 1597

Competent Person 

All scientific and technical information in this announcement has been prepared under the supervision of EuroGeol Vaughan Williams M.Sc. P.Geo (a Principal of Aurum Exploration Services who currently provides exploration services to TM and to LRH), and a “qualified person” within the meaning of National Instrument 43-101. Vaughan Williams is also company secretary of LRH and a Director of the LRH Spanish subsidiary Asturmet Recursos S.L. 

Enquiries

Technology Minerals Plc

Robin Brundle, Executive Chairman

Alexander Stanbury, Chief Executive Officer

+44 20 4582 3500

Global Battery Metals Ltd.

Michael Murphy BA, MBA, MSc., ICD, President & CEO

+1 604-649-2350

Oberon Investments Limited

Nick Lovering, Adam Pollock

+44 (0)20 3179 0535

Arden Partners Plc

Ruari McGirr, George Morgan

+44 207 614 5900

Gracechurch Group

Harry Chathli, Alexis Gore, Amy Stupavsky

+44 20 4582 3500

Technology Minerals Plc  

Technology Minerals is developing the UK’s first listed, sustainable circular economy for battery metals, using cutting-edge technology to recycle, recover, and re-use battery technologies for a renewable energy future. Technology Minerals is focused on extracting raw materials required for Li-ion batteries, whilst solving the ecological issue of spent Li-ion batteries, by recycling them for re-use by battery manufacturers. With the increasing global demand for battery metals to supply electrification, the group will explore, mine, and recycle metals from spent batteries. Further information on Technology Minerals is available atwww.technologyminerals.co.uk  

Technology Minerals #TM1 – Funding enables ramp up of operations at Tipton plant

Technology Minerals Plc (LSE: TM1), the first listed UK company focused on creating a sustainable circular economy for battery metals, is pleased to announce that it has raised a total of approximately £400,000 gross through the issue of 32,000,000 new ordinary shares (“Subscription Shares”) to a new institutional shareholder at a subscription price of 1.25 pence per share, which will represent approximately 2.45% per cent of the Company’s enlarged issued share capital on Admission.

Additionally, the Company has issued 1,100,000 ordinary shares in lieu of payment to a supplier at a subscription price of 1.89 pence per share, which will represent approximately 0.08% per cent of the Company’s enlarged issued share capital on Admission.

The Company intends to use the proceeds primarily to fund the ramping up of the first phase of operations at the Tipton lead-acid battery recycling plant and prepare to commence industrial-scale processing through an automated plant following approval from the Environmental Agency.

Admission and Total Voting Rights

Application will be made for the 33,100,000 new ordinary shares, which will rank pari passu in all respects with the existing ordinary shares of the Company, to be admitted to the Standard List segment of Official List and to trading on the main market of the London Stock Exchange plc, which is expected to occur on or around 8.00 a.m. on 9 November 2022 (“Admission”). Upon Admission, the total number of issued shares and the total number of voting rights in the Company will be 1,304,523,593.

The above figure of 1,304,523,593 should be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.

Alex Stanbury, CEO of Technology Minerals, said: This subscription represents a vote of confidence in our twin-track strategy and the management team. The funds will enable us to scale our operations at the Tipton plant and commence generating meaningful cash flow. It will also help as we lay the groundwork to commence automated production, pending approval from the Environmental Agency.”

Enquiries

Technology Minerals Plc

Robin Brundle, Executive Chairman

Alexander Stanbury, Chief Executive Officer

+44 20 4582 3500

Oberon Investments Limited

Nick Lovering, Adam Pollock

+44 (0)20 3179 0535

Arden Partners Plc

Ruari McGirr, George Morgan

+44 (0)207 614 5900

Gracechurch Group

Harry Chathli, Alexis Gore, Amy Stupavsky

+44 20 4582 3500

Technology Minerals Plc 

Technology Minerals is developing the UK’s first listed, sustainable circular economy for battery metals, using cutting-edge technology to recycle, recover, and re-use battery technologies for a renewable energy future. Technology Minerals is focused on extracting raw materials required for Li-ion batteries, whilst solving the ecological issue of spent Li-ion batteries, by recycling them for re-use by battery manufacturers. With the increasing global demand for battery metals to supply electrification, the group will explore, mine, and recycle metals from spent batteries. Further information on Technology Minerals is available atwww.technologyminerals.co.uk  

Technology Minerals #TM1 – Full Year Results

 

Full Year Results 

Publication of Annual Report and Accounts 

Technology Minerals Plc (LSE: TM1), the first listed UK company focused on creating a sustainable circular economy for battery metals, announces full year results for the 12-month period ended 30 June 2022.

Corporate

· Raised £1.5 million before expenses at admission to the London Stock Exchange in November 2021, which followed a pre-IPO fundraise that raised approximately £5 million

· Appointed James Cable as a Director and Chief Financial Officer (“CFO”) 

Mining

· Acquired 100% stake in Blackbird Creek, adding approximately 1,285 hectares to the Company’s existing land position

· Completed sale of 10% interest in the Blackbird Creek and Emperium cobalt/copper US projects for £0.9 million, with the option to sell a further 20% for £1.8 million

· Received encouraging results from sampling survey at the Oacoma Project, US, which confirmed the presence of manganese and rare earth oxides (“REO”)

· Received positive initial results from a due diligence sampling survey at the Asturmet Copper-Cobalt-Nickel (“Cu-Co-Ni”) Project in Asturias, Spain 

Recyclus Group Ltd (“Recyclus”), a 49% Technology Minerals owned company

· Battery recycling plants at Tipton (lead-acid) and Wolverhampton (lithium-ion) are progressing through the Environment Agency (“EA”) licencing procedure

 Tipton plant awarded permit to allow treatment and processing of lead-acid batteries on-site – the permit is a key step to gaining final approval from EA

 Wolverhampton plant awarded EA permit that provides the critical legal foundation to receive the variation of licence required to be fully operational

 Plants expected to be fully operational within six months, subject to final EA approval

· Opened first laboratory suite at the Wolverhampton facility to conduct in-house testing for lead-acid and lithium-ion (“Li-ion”) battery recycling processes

· Received three lithium battery testbed systems at the Wolverhampton facility, enabling the grading of batteries and access to the battery reuse market

· Partnered with Slicker Recycling Limited (“Slicker Recycling”), whereby Slicker Recycling will collect battery waste from around the UK and transport it to the closest Recyclus plant

·   Partnered with WMG at University of Warwick – a leading academic group providing research, education and knowledge transfer in engineering, management, manufacturing and technology – and have agreed an engineering development partnership

 

Post-Period

· On 3 August 2022, Recyclus’ ‘Halo’ battery boxes received UN-standard safety certification, opening a new revenue stream for Recyclus in domestic and international markets

· On 9 August 2022, the St Patrick licence was extended for three years at the Asturmet Cu-Co-Ni Project in Spain

· On 5 September 2022, Recyclus received ABTO status from the EA for its recycling site in Tipton, enabling Recyclus to immediately commence manual recycling operations at its lead-acid facility

· On 19 October 2022, the Company signed binding Heads of Terms to acquire the remaining issued share capital of Recyclus

 

Alex Stanbury, CEO of Technology Minerals said: “We are delighted to report our first set of full year results following our successful listing on the London Stock Exchange in November 2021 in what has been a landmark year for the Company.

 

“We made good progress with our mining assets focused on key battery metals to move them up the value curve, particularly in Ireland, Spain and the US. In addition, Recylcus, our 49% owned battery recycling company, has two UK battery recycling plants ready to come online, subject to final Environment Agency approval. The lead-acid and Li-ion battery recycling plants are the first two of a planned roll out of 10 plants over the coming years as we aim to expand our commercial footprint in the UK, Europe and the US.

 

“Earlier this month, we agreed to acquire the remaining share capital of Recyclus. We believe Recyclus is positioned to play a significant role in the industrial scale opportunity of recycling Li-ion and lead-acid batteries.  Combining the two businesses will help us to advance our twin-track strategy to create a circular economy for battery metals through both the raw material supply, and the reprocessing and re-use of end-of-life batteries.”

 

For further information please contact:

Technology Minerals Plc

Robin Brundle, Executive Chairman

Alex Stanbury, Chief Executive Officer

+44 20 4582 3500

Oberon Investments Limited

Nick Lovering, Adam Pollock

+44 20 3179 0535

Arden Partners Plc

Ruari McGirr, George Morgan

+44 207 614 5900

Gracechurch Group

Harry Chathli, Alexis Gore, William Dobinson

+44 20 4582 3500

 

About Technology Minerals Plc  

 

Technology Minerals is developing the UK’s first listed, sustainable circular economy for battery metals, using cutting-edge technology to recycle, recover, and re-use battery technologies for a renewable energy future. Technology Minerals is focused on extracting raw materials required for Li-ion batteries, whilst solving the ecological issue of spent Li-ion batteries, by recycling them for re-use by battery manufacturers. With the increasing global demand for battery metals to supply electrification, the group will explore, mine, and recycle metals from spent batteries. Further information on Technology Minerals is available at www.technologyminerals.co.uk    

OPERATIONAL REVIEW

It has been a year of progress for Technology Minerals with a successful IPO on the London Stock Exchange in November 2021. The Company has made significant steps in advancing its strategy to create a fully circular economy for battery metals including lithium, copper, cobalt, nickel and manganese. The Company has made good progress in advancing its exploration assets up the value chain, most notably with its projects in Spain and the USA. Meanwhile, the Company’s 49%-owned battery recycling company, Recyclus, has made significant steps towards creating a national infrastructure for the recycling of lead-acid and Li-ion batteries at its Tipton and Wolverhampton plants and the launch of the Halo battery boxes, which enable safe transportation and storage of Li-ion batteries.

The Company’s growth strategy is based on this twin-track approach of utilising the mining and recycling business to create a sustainable circular economy for battery metals through the extraction of key minerals and the recycling of lead-acid and Li-ion batteries.

Progressing mining assets up the value chain

The Company has a globally diverse portfolio of junior mining assets focused on the critical minerals essential to powering the transition to net-zero. These include cobalt, copper, nickel, manganese, and lithium, based at projects in the USA, Spain, Ireland and Cameroon.

The Company takes early-stage projects with potential to move them up the value curve through prudent deployment of capital to attract larger joint venture partners to fund the development of the projects. This strategy gives the Company the opportunity to add significant value to the Company’s portfolio without taking on the more substantial costs associated with developing exploration assets.

The Company’s exploration assets by location and resource: 

 

Project 

Location 

Resource 

Asturmet 

Spain 

Nickel, Copper, Cobalt 

Blackbird Creek Property and Emperium 

USA 

Primary Cobalt 

NW Leinster Lithium 

Ireland 

Lithium 

Oacoma 

USA 

Manganese, Nickel, Cobalt, Rare Earth Oxides 

Technology Minerals Cameroon 

Cameroon 

Nickel Laterite, Cobalt 

The Asturmet Project, Spain

In March 2022, the Company was pleased to find that deposit characterisation sampling confirmed the presence of high-grade mineralisation of copper, cobalt and nickel at the underground Aramo Mine. Post-period, in August 2022, the St Patrick licence, on which the Aramo Mine Project is located, was extended for three years, extending the licence to June 2025, and field operations progressed further with 164 additional samples submitted for analysis. The Company is still conducting field programmes at the projects and are planning a more expansive exploration campaign, which will provide further understanding of the full potential of the project.

 

The Asturmet Project – based in the Principality of Asturias, north-west Spain – consists of seven exploration permits. One permit has been granted (St. Patrick), and the rest are currently under application. All permits are considered prospective for cobalt-nickel-copper mineralisation.

 

Blackbird and Emperium, Idaho, USA

In May 2022, the Company completed the sale of an initial 10% interest in its registered claims for the Blackbird and Emperium projects (collectively “the Properties”), for £900,000 to Bluebird Metals LLC (“the Buyer”). The sale agreement included a proposed option to sell a further 20% interest to the Buyer in the Properties for a further cash consideration of £1.8m exercisable within a six-month period from the signing date.

 

Technology Minerals’ wholly-owned subsidiary, Techmin Limited, acquired 100% interest in the Blackbird Property, from DG Resource Management Ltd in March 2022. The acquisition added 158 contiguous lode claims, covering an area of approx. 1,285 ha to the Company’s existing land position. The Blackbird Creek Property is situated in the Idaho Cobalt Belt – a 40-50km district characterised by copper-cobalt deposits. The primary exploration target is cobalt, though results from historical drilling and recent surface sampling indicate that there is potential to host significant cobalt-copper deposits.

 

The Emperium Project – held by Technology Minerals through its wholly-owned subsidiary, Emperium 1 Holdings Corp, covers approximately 55km² in east-central Idaho, making it one of the largest land positions in the renowned Idaho Cobalt Belt. To date, there has been limited exploration conducted on the property in the form of lithogeochemical (rock) sampling, and satellite image interpretation.

 

Oacoma, South Dakota, USA

The Oacoma Project is considered prospective for manganese and rare earth elements, as well as nickel, cobalt, copper, and in February 2022, the Company received encouraging results from 27 rock samples from the Oacoma site, which confirmed the presence of manganese and rare earth oxide mineral grades.

 

Technology Minerals Ltd (“TML”) currently holds 15% of the Oacoma Project, and had the option to acquire up to a further 85% working interest on the terms of an exploration agreement that were to be agreed with North American Strategic Minerals Inc. Given this particular project is very early stage, and after reviewing the Company’s entire project portfolio, the Board has taken the strategic decision to retain a 15% interest but will not be exercising its option to acquire a further 85% working interest in the project and has terminated its agreement with North American Strategic Minerals Inc.

 

Leinster, Ireland

The Leinster Property – located in the counties of Wicklow and Dublin, in the Republic of Ireland – is a lithium pegmatite project that consists of fifteen prospecting licence areas, covering approximately 477km². All the licences are currently owned by LRH Resources Limited – a wholly-owned subsidiary of Technology Minerals Plc.

Lithium mineralisation has been confirmed, with spodumene bearing samples from various prospects identified within the project area: Sorrel (1.66% Li2O equivalent); Tonygarrow (1.0% Li2O); Aghavannagh (1.78% Li2O).

Post-period, the Company announced in October 2022 that Global Battery Metals had exercised their first option to earn 17.5% equity by spending up to €85,000 in expenditures on the property, separately from the license fees and up to €6,500 in connection with license charges, fees and rents as were required to keep the Property in good standing by 12 October 2022.

The Company and GBML plan further work programmes on the Property in Q4 2022, with geological mapping, lithogeochemical sampling, ground surveying, deep overburden sampling and limited diamond drilling where warranted.

Cameroon

The Technology Minerals Cameroon ( ” TMC ” ) Property consists of five exploration permits in south-eastern Cameroon – at least three of which are considered prospective for nickel-cobalt rich laterite. Since applying for the permits in February 2021, TMC has performed a reconnaissance exploration on the five permit areas, which entailed geochemical evaluation, soil sampling, and lithogeochemical (rock) sampling. As announced in June 2022, the Company received five exploration permits at its site in south-eastern Cameroon and instructed its legal counsel to take steps to ensure that the permits will be valid under Cameroon law.

 

Creating a national capability for battery recycling in the UK and beyond

During the period, there was significant progress at Recyclus. Recyclus has developed proprietary technology to recycle Li-ion batteries and is now uniquely placed having created an industrial-scale solution and being first to market for the UK. The Company has an early-to-market advantage to service the growing requirements of the key industrial sectors, from aerospace, transport and automotive to energy and motorsport.

Two plants to come online

Recyclus has two battery recycling plants in Tipton and Wolverhampton. In May 2022, the plants were given an EA permit for the treatment and processing of lead-acid (Tipton) and Li-ion (Wolverhampton) batteries on-site. In addition, Recyclus was awarded with priority status from the EA, as it was satisfied that the development of the company will help maintain national resilience, national infrastructure and/or is critical for environmental protection. The plants are expected to come online and be fully operational within six months, subject to final clearance from the EA.

Tipton (lead-acid battery recycling plant)

The Tipton plant is designed to process up to 12 tonnes an hour of lead-acid batteries and is a fully automated system that is capable of recycling lead-acid batteries. The process breaks down the battery into separate constituent parts, to ensure it is fully recycled and recovers lead paste, acid, and plastic materials.

Post-period, in September 2022, Recyclus received Approved Battery Treatment Operator (“ABTO”) status at the Tipton plant, granting approval to begin manual processing of lead-acid batteries at the site. Under ABTO status, Recyclus is authorised to produce up to 15,000MT per annum of lead and store up to 300MT of inbound stock at any one time on-site. This enabled phase one of production to begin, with the second phase set to begin once final approval is granted by the EA.

Wolverhampton (Li-ion battery recycling)

The opening of a new Li-ion recycling facility in Wolverhampton will be the first in the UK with the capacity to recycle Li-ion batteries on an industrial-scale. The company is targeting to expand its battery recycling volume from 8,300 tonnes in the first full year of production, to 41,500 tonnes by 2027.

In June 2022, Recyclus received three lithium battery testbed systems designed to measure a range of different battery chemistries of varying sizes at the Wolverhampton site. The testbed systems provide Recyclus with the operational capability to test the effective capacity of battery packs from a range of EV and industrial usages as well as for degradation or damage at the cell level.

By charging and discharging batteries to measure capacity and capture stored energy, it can also perform a number of other critical performance test criteria. The ability to discharge stored energy unlocks future opportunities to feed energy back into the national grid and for use on-site.

This testing capability enables Recyclus to grade batteries and access the reuse market for batteries alongside recycling. The tested battery packs will be sorted into one of three categories: the first are suitable for reuse as they are, the second are defective and need to be recycled, and the third are a split with some cells being retrievable and others not. It creates an opportunity for Recyclus to send suitable batteries back into alternative repurposed applications, depending on their condition and test results.

Slicker Recycling

In November 2021, Technology Minerals signed a partnership agreement with Slicker Recycling, one of the UK’s leading hazardous waste management and service delivery providers, to collect battery waste from around the UK and safely transport it to the closest Recyclus plant. The agreement will help ramp up the recycling capacity for both lead-acid and Li-ion batteries. Once the two plants are fully operational, Recyclus believes this partnership can provide up to 40% of its lead-acid battery capacity, and up to 90% of its Li-ion capacity. Slicker Recycling has nine depots nationwide and executes more than 25,000 collections per annum.

Partnership with WMG

Recyclus agreed an engineering development partnership with WMG at the University of Warwick, a leading academic group providing research, education and knowledge transfer in engineering, management, manufacturing and technology.

Recyclus and WMG have been working together for over two years sharing expertise and developing the proprietary processes across the five key Li-ion battery chemistries. This partnership brings together WMG’s world-class research programmes and Recyclus’ leading battery recycling technology.

WMG and Recyclus have created an Engineering Doctorate focused on battery recycling technologies and a transfer of current and future applications. The EngD encompasses a four-year programme supporting talented individuals at varying career stages to develop new critical skill sets in this sector and will also focus on addressing contemporary industrial and technical challenges across the battery recycling sector.

According to a WMG report, by 2040 the UK automotive lithium-ion battery cell production alone will require 131,000 tonnes of cathodic metals. With the right infrastructure, recycling can supply 22% of this demand. This represents not only a positive environmental impact, but large savings for manufacturers, building the business case for increased battery recycling capabilities in the UK.

Halo Battery Recycling

In August 2022, Recyclus received UN-standard safety certification for its Halo battery boxes after they passed the rigorous safety standards. The ADR certification P911(1) is a requirement for transporting hazardous substances by road within Europe and confirmed Recyclus’ ability to safely transport and store batteries. It highlights the importance of security and safety in the battery supply chain, especially with potentially hazardous Li-ion batteries.

This achievement paves the way for Recyclus to start marketing the boxes and the focus now is on driving sales both within the UK and internationally to scale revenues for the business unit. Discussions with potential customers have demonstrated the level of demand for the Halo boxes and Recyclus expects to see sales in 2022.

Events since the year end

In October 2022, the Company signed binding Heads of Terms agreement to acquire the remaining approximately 51% of shares in Recyclus not already owned. The transaction is subject to completion of due diligence and shareholder approval.

The acquisition strengthens Technology Minerals’ balance sheet and provides early cashflow from recycling operations controlled by Technology Minerals. The combination of the two businesses offers a differentiated, IP protected exposure to battery processing, aligning the enlarged business with the energy transition taking place and the circular economy.

Financial Review

The Group has had an excellent financial year with strong progress being made in exploration and development on its battery metals mining licences and in respect of its key investment in the Recyclus Group. The Company successfully listed on the main board of the London Stock Exchange in November 2021, raising £1.6 million before expenses, with cash raised subsequently from the exercise of Warrants of £0.8 million. The IPO followed the amalgamation of several companies holding prime mining licences, which are included on the Group balance sheet at £18.3 million. In addition, the Company had previously raised approximately £5 million from pre-IPO funding. At the year end, the Group had cash of £0.4 million.

The Group is in an early pre-revenue stage of development in respect of its mining assets, and in the financial year has spent £1.0 million on exploration and evaluation, including £0.5 million in respect of the acquisition of the Blackbird Creek project in the USA. In May 2022, it sold a 10% stake in its Idaho assets for £900,000 a transaction which demonstrates the underlying strength and potential of its portfolio of assets. Corporate and other operating expenditure in the year amounted to £1.9 million and the consolidated loss for the financial year was £1.8 million.

The Group holds a 49% equity interest in the Recyclus Group which it acquired at nominal cost, and as of 30 June 2022 had lent it £4.5 million in order to fund the construction of its first Li-ion and lead battery recycling plants plus other costs, with loan repayments commencing in July 2022 as planned. The plants are ready to operate pending Environment Agency permitting and the Group anticipates that Recyclus Group will become cash generative in the short-term.

The Group proposes to continue its exploration and development work in the coming year on its mining licences to maximise their value potential, although proposed work will correspond with available cash resources.

Dividend

The Board is not in a position to propose a final dividend for the year.

Risks

The Company was incorporated recently, in 2021 and lacks a significant operating history, and therefore, investors have little basis on which to evaluate the Company’s ability to achieve its objective of identifying, acquiring and operating one or more companies, businesses, prospects or assets.

In addition to the general risks laid out in the Annual Report, published today, the Directors feel that the Company has specific risks around the timing of the granting of the EA licenses for Recyclus’s plants which could delay their commercial activity. Technology Minerals Cameroon Limited, a wholly owned subsidiary of the Company applied for five exploration permits in Cameroon. As announced on in June 2022, the Company received five exploration permits at its site in south-eastern Cameroon and instructed its legal counsel to take steps to ensure that the permits will be valid under Cameroon law.

Outlook

 

The successful listing on the London Stock Exchange, the funds raised, and subsequent strong progress in the period has provided the Company with an excellent platform to deliver on its growth plans.

The Company’s focus is to increase recycling capacity for lead-acid and Li-ion batteries with two UK plants coming on stream within six months and it aims to build a total of 10 plants over the next five years. For the first time in the UK, there will be the capability to recycle the key materials from end-of-life Li-ion batteries on an industrial-scale using Recyclus’ innovative technology.

In parallel, the Company is continuing to advance its exploration assets, focused on key battery metals, up the value curve in a capital light manner to attract major partners to inject development capital into the projects. The sale of 10% interest in the Blackbird and Emperium projects in May 2022 has already demonstrated the potential to add significant value into the Company through this strategy.

Through its twin-track approach of the extraction of metals and battery recycling, as well as the safe transportation and storage of Li-ion batteries, Technology Minerals is well-positioned for long-term sustainable growth as the Company aims to become a key contributor in the global transition to electrification.

Publication of Annual Report and Accounts

The Company’s Annual Report and Accounts is being posted to shareholders and will be made available on the Company’s investor relations website at: https://www.technologyminerals.co.uk/

Consolidated Statement of Comprehensive Income

For the period ended 30 June 2022

 

 

 

 

2022

Continuing operations

 Notes

 

£000

 

IPO costs

 

(146)

Administrative expenses

7

 

(1,734)

Operating loss

 

(1,880)

Other income

9

 

49

Net finance charges

10

 

46

Loss before taxation

 

(1,785)

Income tax

11

 

Loss for the period

 

(1,785)

Attributable to:

 

Equity holders of the Company

 

(1,782)

Non-controlling interests

 

(3)

 

 

(1,785)

Other comprehensive income

 

Items that may be subsequently reclassified to profit or loss:

 

Exchange gains arising on translation of foreign operations

 

30

Total comprehensive loss for the period

 

(1,755)

Attributable to:

 

Equity holders of the Company

 

(1,752)

Non-controlling interests

 

(3)

Total comprehensive loss for the period

 

(1,755)

 

Loss per share:

 

Basic and diluted earnings per share (pence)

12

 

(0.23)p

 

 

The accompanying notes form an integral part of this consolidated financial statements.

 



 

Consolidated Statement of Financial Position

As at 30 June 2022

 

 

 

 

2022

 

 Notes

 

£000

Non-current assets

 

Property, plant and equipment

13

 

5

Intangible assets

14

 

18,300

Financial assets

15

 

1,221

Loans to associates

18

 

4,538

Total non-current assets

 

24,064

 

Current assets

 

Trade and other receivables

19

 

67

Cash and cash equivalents

20

 

371

Current assets

 

438

Total assets

 

24,502

 

Current liabilities

 

Trade and other payables

21

 

602

Borrowings

22

 

21

Total current liabilities

 

623

 

 

Non-current liabilities

 

Deferred tax liability

23

 

2,891

Total non-current liabilities

 

2,891

Total liabilities

 

3,514

Net assets

 

20,988

Equity

Share Capital

24

 

1,271

Share Premium

24

 

19,770

Warrants reserve

25

 

1,420

Foreign exchange reserve

 

30

Accumulated deficit

 

(1,529)

Equity attributable to owners of the parent

 

20,962

Non-controlling interests

27

 

26

Total equity

 

 

20,988

 

The accompanying notes form an integral part of this consolidated financial statements.

 

Consolidated Statement of Changes in Equity

For the period ended 30 June 2022

 

 

                                                         Attributable to equity holders of the Company

 

 

 

Share capital

 

 

Share Premium

 

 

Warrants

  reserve

 

Foreign exchange reserve

 

 

Accumulated deficit

 

 

Equity

 

Non-controlling interests

 

 

Total

Equity

 

£000

£000

£000

£000

£000

£000

£000

£000

At incorporation on 9 June 2021

50

50

50

 

 

 

 

 

 

 

 

 

Loss for the period

(1,782)

(1,782)

(3)

(1,785)

Exchange gain on translation of foreign operations

 

 

 

 

30

 

(3)

 

27

 

3

 

30

Total comprehensive loss for the period

30

(1,785)

(1,755)

(1,755)

 

 

 

 

 

 

 

 

 

Issue of share capital

1,221

22,738

23,959

23,959

Share issue costs

(1,312)

(1,312)

(1,312)

Warrants issued

(1,656)

1,656

Warrants exercised

(236)

236

Part disposal of subsidiary

20

20

26

46

Balance at 30 June 2022

1,271

19,770

1,420

30

(1,529)

20,962

26

20,988

 

The accompanying notes form an integral part of this consolidated financial statements.

Consolidated Statement of Cash Flows

For the period ended 30 June 2022

 

 

 

 

2022

 

 Notes

 

£000

 Cash flows from operating activities

Loss before taxation

 

(1,785)

Adjustments for:

 

Depreciation

13

 

3

Unrealised foreign exchange movements

 

(4)

Net cashflow before changes in working capital

 

(1,786)

 

Movement in receivables

 

(21)

Movement in payables

 

423

Net cash (used in) operating activities

 

(1,384)

Cash flows from investing activities

 

Acquisition of subsidiaries net of cash

16

 

26

Purchase of property, plant and equipment

13

 

(4)

Exploration expenditure

14

 

(892)

Loan to associate

18

 

(4,538)

Proceeds from sale of investment in subsidiary

 

860

Net cash used in investing activities

 

(4,548)

Cash flows from financing activities

 

 

Issue of share capital

 

1,550

Cost of issue of shares

 

(430)

Proceeds from exercise of warrants

 

788

Proceeds of borrowing

 

5,193

Cost of procuring convertible loan notes

 

(798)

Net cash generated from financing activities

 

6,303

Net change in cash and cash equivalents during the period

 

371

Cash at the beginning of period

 

 

Cash and cash equivalents at the end of the period

 

 

371

 

 

The accompanying notes form an integral part of this consolidated financial statements.



 

Company Statement of Financial Position

As at 30 June 2022

 

 

Notes

 

2022

 

 

 

£000

Non-current assets

 

Property, plant and equipment

13

 

2

Investment in subsidiaries

16

 

14,905

Trade and other receivables

19

 

1,504

Loans to associates

18

 

4,538

Total non-current assets

 

20,949

 

Current assets

 

Trade and other receivables

19

 

71

Cash and cash equivalents

20

 

199

Current assets

 

270

Total assets

 

21,219

 

Current liabilities

 

Trade and other payables

21

 

447

Total current liabilities

 

447

Net assets

 

20,772

Equity

Share Capital

24

 

1,271

Share Premium

24

 

19,770

Warrants reserve

25

 

1,420

Accumulated deficit

 

(1,689)

Total equity

 

 

20,772

The Company profit and loss account has been approved by the Directors, and the use of the exemption under s408 of the Companies Act has been applied to publish an individual profit & loss statement.

 

Losses for the Company for the period ended 30 June 2022 were £1,925,000.

 

 

The accompanying notes form an integral part of the company financial statements.



 

Company Statement of Changes in Equity

For the period ended 30 June 2022

 

 

 

Share capital

 

Share Premium

 

Warrants

  reserve

 

Accumulated deficit

 

Total

Equity

£000

£000

£000

£000

£000

At incorporation on 9 June 2021

 

50

 

 

 

50

 

Loss for the period

(1,925)

(1,925)

Total comprehensive loss for the period

 

 

 

(1,925)

 

(1,925)

 

 

 

 

 

 

Issue of share capital

1,221

22,738

23,959

Share issue costs

(1,312)

(1,312)

Warrants issued

(1,656)

1,656

Warrants exercised

(236)

236

Balance at 30 June 2022

1,271

19,770

1,420

(1,689)

20,772

 

The accompanying notes form an integral part of the company financial statements.

Company Statement of Cash Flows

For the period ended 30 June 2022

 

 

 

 

2022

 

Notes 

 

£000

 Cash flows from operating activities

Loss before taxation

 

(1,925)

Adjustments for:

 

Depreciation

13

 

1

Impairment loss

 

462

Gain on sale of investment in subsidiary

 

(20)

Net cashflow before changes in working capital

 

(1,482)

 

Movement in receivables

 

(21)

Movement in payables

 

527

Net cash (used in) operating activities

 

(976)

Cash flows from investing activities

 

Purchase of property plant and equipment

13

 

(3)

Acquisition of subsidiary

16

 

(20)

Loans to associates

18

 

(4,538)

Loans to subsidiaries

19

 

(1,427)

Proceeds from sale of investment in subsidiary

 

860

Net cash used in investing activities

 

(5,128)

Cash flows from financing activities

 

 

Issue of share capital

24

 

1,550

Cost of issue of shares

24

 

(430)

Proceeds from exercise of warrants

25

 

788

Proceeds of borrowing

26

 

5,193

Cost of borrowing

 

(798)

Net cash generated from financing activities

 

6,303

Net change in cash and cash equivalents during the period

 

199

Cash at the beginning of period

 

 

Cash and cash equivalents at the end of the period

20

 

199

 

 

 

 

The accompanying notes form an integral part of the company financial statements.



 

Notes to financial statements

1.   General information

Technology Minerals Plc (the ‘Company’) is a public limited company incorporated and domiciled in England under the Companies Act with registration number 13446965. The Company is listed on the main market of the London Stock Exchange. The Company’s registered office is Finsgate 5-7 Cranwood Street, London, England, EC1V 9EE.

 

2.   Basis of preparation

The principal accounting policies, methods of computation and presentation used in the preparation of the consolidated financial information are shown below. The policies have been consistently applied to all the years presented, unless otherwise stated.

 

Financial year ending 30 June 2022 covers the periods from 9 June 2021 to 30 June 2022. As the Company was incorporated on 9 June 2021 and the Group formed on 17 November 2021, there is no comparison period reported.

 

Technology Minerals Plc’s consolidated financial statements are presented in Pounds Sterling (£), which is also the functional currency of the parent company. All amounts are rounded to nearest thousand.

 

There have been no changes to the reported figures as a result of any new reporting standards or interpretations.

 

Basis of preparation

The Group’s financial statements have been prepared in accordance with UK adopted international accounting standards (IFRSs) in conformity with the requirements of the Companies Act 2006 and in accordance with the requirements of the Companies Act 2006.

 

The consolidated financial statements have been prepared on the historical cost basis, except for the measurement to fair value of assets and financial instruments as described in the accounting policies below, and on a going concern basis.

 

Going Concern

On 18 November 2021 the Group obtained a Standard Listing on the LSE raising gross proceeds of £1.5 million before expenses. Subsequently, warrant exercises raised a further £0.8 million and the Group raised £0.9 million from the sale of a 10% interest in one of its mining assets. Additional plans are in place to raise further working capital and at the date of this report the Company is at an advanced stage in securing additional funding from new share placements and other sources of finance. The Company has lent Recyclus Group £4.5 million as at the balance sheet date and the first repayment under the loan agreement was received in July 2022 in accordance with the schedule.

The Directors have a reasonable expectation that the Company will be able to raise sufficient funds in order to meet planned expenditure for at least 12 months from the date of approval of these consolidated financial statements and therefore the consolidated financial statement have been prepared on a going concern basis.

The Board continues to monitor the impact of the Ukraine war on the ability of the Group to pursue its strategy and will make appropriate changes should they be required.  There is not considered to be any material impacts on the financial position or results of the Group as a result of the Ukraine war at the reporting date.

 

Material Uncertainty

 

The Group’s ability to continue as a going concern is reliant on raising additional finance. The Company is currently in an advanced stage in securing further funding from share placements and other sources of finance. In addition, the cashflow forecast includes loan repayments from Recyclus which are dependent on the granting of environmental agency permits and the achievement of the sales forecasts. These conditions, along with other matters set out above indicate a material uncertainty exists that may cast significant doubt on the group and the parent company’s ability to continue as a going concern.

 

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company its subsidiaries as if they formed a single entity. Subsidiaries are entities over which the Group has control. Control exists when the Company:

• has power over the investee;                                                                                                                   • is exposed, or has rights, to variable returns from its involvement with the investee; and                       • has the ability to use its power to affect its returns.

On acquisition, in the statement of financial position, the acquiree’s identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date on which control ceases. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the Group financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.

Investments in subsidiaries are accounted for at cost less impairment within the Company financial statements. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used in line with those used by other members of the Group

All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between the members of the Group are eliminated on consolidation.

Acquisitions and disposals of non-controlling interests in subsidiaries that do not result in a loss of control are accounted as transactions within equity. The difference between the fair value of the consideration paid or received and the amount by which the non-controlling interests are adjusted is recognised in equity and attributed to equity holders of the parent company.

 

3.   New standards, amendments and interpretations adopted by the Company

The following IFRS or IFRIC interpretations were effective for the first time for the financial year beginning 9 June 2021. Their adoption has not had any material impact on the disclosures or on the amounts reported in this financial information:

 

Standards/interpretations

Application

Effective from

IFRS 1 amendments

First-time Adoption of International Financial Reporting Standards

1 January 2022

IFRS 3 amendments

Business Combinations

1 January 2022

IAS 16 amendments

Property, Plant and Equipment

1 January 2022

IAS 37 amendments

Provisions, Contingent Liabilities and Contingent Assets

1 January 2022

IFRS 9 amendments

Annual Improvements to IFRS Standards 2018-2020 (fees in the 10 percent test for derecognition of financial liabilities).

1 January 2022

IAS 1

Presentation of Financial Statements

1 January 2023

IFRS 17

Insurance Contracts

1 January 2023

IAS 8 amendments

Definition of accounting estimates

1 January 2023

 

Financial instruments

 

Financial assets

The Company classifies its financial assets in the following measurement categories:

•     those to be measured subsequently at fair value through profit or loss;

•     those to be measured at amortised cost; and

•     those to be measured at fair value through other comprehensive income (FVTOCI).

The classification depends on the business model for managing the financial assets and the contracted terms of the cash flows. Financial assets are classified as at amortised cost only if both of the following criteria are met:

•     the asset is held within a business model whose objective is to collect contracted cash flows; and

•     the contractual terms give rise to cash flows that are solely payments of principal and interest.

Financial assets, including trade and other receivables and cash and bank balances, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the consolidated income statement.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in the consolidated income statement.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

On initial recognition, the Group may make an irrevocable election (on an instrument-by-instrument basis) to designate investments in equity instruments as at FVTOCI. Investments in equity instruments at FVTOCI are initially measured at fair value. Subsequently, they are measured at fair value with net changes in fair value recognised in other comprehensive income. Gains and losses on these financial assets are never recycled to profit or loss.

Financial liabilities

Basic financial liabilities, being trade and other payables, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. The Company does not hold or issue derivative financial instruments.

Investment in subsidiaries

Investments in subsidiaries are initially measured as cost and reviewed for impairment at each reporting period. An investor controls an investee when the investor is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control is obtained up to the date that control ceases.

Intra-group balances and any unrealised gains, losses, income or expenses arising from intra-group transactions are eliminated in preparing the consolidated financial statements.

Investment in associates

Where the Group has the power to participate in (but not control) the financial and operating policy decisions of another entity, it is classified as an associate. Associates are initially recognised in the consolidated statement of financial position at cost. Subsequently associates are accounted for using the equity method, where the Group’s share of post-acquisition profits and losses and other comprehensive income is recognised in the consolidated statement of profit and loss and other comprehensive income (except for losses in excess of the Group’s investment in the associate unless there is an obligation to make good those losses).

Profits and losses arising on transactions between the Group and its associates are recognised only to the extent of unrelated investors’ interests in the associate. The investor’s share in the associate’s profits and losses resulting from these transactions is eliminated against the carrying value of the associate.

Any premium paid for an associate above the fair value of the Group’s share of the identifiable assets, liabilities and contingent liabilities acquired is capitalised and included in the carrying amount of the associate. Where there is objective evidence that the investment in an associate has been impaired the carrying amount of the investment is tested for impairment in the same way as other non-financial assets.

Foreign currency

Foreign currency transactions

Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the date of the consolidated statement of financial position are translated at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in profit or loss.

Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are translated at foreign exchange rates ruling at the dates the fair value was determined.

Financial statements of operations

The assets and liabilities of operations, including goodwill and fair value adjustments arising on consolidation, are translated to Pound Sterling at exchange rates ruling at the date of the consolidated statement of financial position. The revenues and expenses of operations are translated to Pound Sterling at rates approximating to the exchange rates ruling at the dates of the transactions. Foreign exchange differences arising on retranslation are recognised in other comprehensive income. They are reclassified to profit or loss upon disposal.

On disposal of a foreign operation, the cumulative exchange differences recognised in the foreign exchange reserve relating to that operation up to the date of disposal are reclassified to the profit or loss as part of the profit or loss on disposal.

Current and deferred income tax

Current income tax is calculated on the basis of the tax laws enacted or substantively enacted at the statement of financial position date in the country where the Company operates and generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial information. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the statement of financial position date and are expected to apply when the related deferred income tax asset is realised, or the deferred income tax liability is settled. Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised

Loss per share

The Group presents basic and diluted loss per share (“LPS”) data for its ordinary shares. Basic LPS is calculated by dividing the profit or loss attributable to shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. Diluted LPS is determined by adjusting the profit or loss attributable to shareholders and the weighted average number of ordinary shares outstanding for the effects of all potentially dilutive ordinary shares, which could comprise warrants, share options and the conversion of loan notes into shares.

Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is charged to the income statement on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment.

Office equipment are depreciated straight line over 3 years.

Intangible assets

Intangible assets not acquired as part of a business combination are initially carried at cost. Intangible assets acquired as part of a business combination, and separately recognised from goodwill, are capitalised and measured at their fair value at the date of acquisition.

Exploration and evaluation costs

These comprise costs directly incurred in exploration and evaluation as well as the cost of mineral licences. Mineral evaluation and exploration costs which are capitalised as intangible assets include costs of licence acquisition, technical services and studies, exploration drilling and testing and appropriate technical and administrative. Exploration costs are capitalised as intangible assets pending the determination of the feasibility the commercial viability of the project.

When the decision is taken to develop a mine, the related intangible assets are transferred to property, plant and equipment and the exploration and evaluation costs are amortised over the estimated life of the project. Prior to reclassification to property, plant and equipment exploration and evaluation assets are assessed for impairment and any impairment loss recognised immediately in the statement of comprehensive income.

Where a project is abandoned or is determined not economically viable, the related costs are written off.

The recoverability of deferred exploration and evaluation costs is dependent upon a number of factors common to the natural resource sector. These include the extent to which the Company can establish mineral reserves on its properties, the ability of the Company to obtain necessary financing to complete the development of such reserves and future profitable production or proceeds from the disposition thereof.

Goodwill

Goodwill represents the excess of the cost of a business combination over the Group’s interest in the fair value of identifiable assets, liabilities and contingent liabilities acquired.

Cost comprises the fair value of assets given, liabilities assumed, and equity instruments issued, plus the amount of any non-controlling interests in the acquiree plus, if the business combination is achieved in stages, the fair value of the existing equity interest in the acquiree. Contingent consideration is included in cost at its acquisition date fair value and, in the case of contingent consideration classified as a financial liability, remeasured subsequently through profit or loss.

Goodwill is capitalised as an intangible asset with any impairment in carrying value being charged to the consolidated statement of comprehensive income. Where the fair value of identifiable assets, liabilities and contingent liabilities exceed the fair value of consideration paid, the excess is credited in full to the consolidated statement of comprehensive income on the acquisition date.

Impairment of non-financial assets

The carrying amounts of the Group’s assets are reviewed at the date of each consolidated statement of financial position to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. Impairment is measured by comparing the carrying values of the asset with its recoverable amount. The recoverable amount of the asset is the higher of the assets’ fair value less costs to sell and its value-in-use, which is measured by reference to discounted future cash flow.

An impairment loss is recognised in the income statement immediately.

When there is a change in the estimates used to determine the recoverable amount, a subsequent increase in the recoverable amount of an asset is treated as a reversal of the previous impairment loss and is recognised to the extent of the carrying amount of the asset that would have been determined (net of amortisation and depreciation) had no impairment loss been recognised. The reversal is recognised in the income statement immediately, unless the asset is carried at its revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Trade and other receivables 

Trade and other receivables are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method. 

Cash and cash equivalents

Cash and cash equivalents comprise cash in hand, demand deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. The carrying amount of these assets approximates their fair value.

Trade and other payables  

Trade and other payables are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method. 

Borrowings

Interest bearing debt facilities are initially recognised at fair value, net of directly attributable transaction costs. Transaction costs are recognised in the income statement on a straight-line basis over the term of the facility.

Equity instruments and reserves description

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments issued by the Company are recorded at the proceeds received net of direct issue costs.

Ordinary shares are classified as equity and rank in full for all dividends or other distributions declared, made or paid on the ordinary share capital of the Company.

Share capital account represents the nominal value of the ordinary shares issued.

The share premium account represents premiums received on the initial issuing of the share capital. Any transaction costs associated with the issuing of shares are deducted from share premium, net of any related income tax benefits.

Warrant reserve represents equity-settled share-based payments made to third parties until such warrants are exercised.

Foreign exchange reserve represents:

·     differences arising on the opening net assets retranslation at a closing rate that differs from opening rate; and

·     differences arising from retranslating the income statement at exchange rates at the dates of transactions at average rates and assets and liabilities at the closing rate.

Retained earnings include all current and prior period results as disclosed in the Statement of Comprehensive Income.

Warrants

The Company estimates the fair value of the future liability relating to issued warrants using the Black-Scholes pricing model considering the terms and conditions upon which the warrants were issued.

Warrants relating to equity finance are recorded as a reduction of capital stock based on the fair value of the warrants.

Share-based payments

Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the equity instrument at the grant date. Fair value is measured by use of Black-Scholes model. Where the value of the goods or services received in exchange for the share-based payment cannot be reliably estimated the fair value is measured by use of a Black-Scholes model.

The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group’s estimate of shares that will eventually vest.

Equity-settled share-based payment transactions with other parties are measured at the fair value of the goods and services received, except where the fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity instruments granted, measured at the date the entity obtains the goods or the counterparty renders the service.

All equity-settled share-based payments are ultimately recognised as an expense in the profit or loss with a corresponding credit to “Share-based payments reserve”.

Upon exercise of share options, the proceeds received net of attributable transaction costs are credited to share capital, and where appropriate share premium. No adjustment is made to any expense recognised in prior periods if share options ultimately exercised are different to that estimated on vesting or if the share options vest but are not exercised.

When share options lapse or are forfeited the respective amount recognised in the Share-based payment reserve is reversed and credited to accumulated profit and loss reserve.

4.   Financial risk

The following represent the key financial risks that the Company faces:

Financial risk factors

The Company’s operations exposed it to a variety of financial risks that had included the effects of credit risk, liquidity risk and interest rate risk. The Company had in place a risk management programme that attempted to limit the adverse effects on the financial performance of the Company by monitoring levels of debt finance and the related finance costs. The Company did not use derivative financial instruments to manage interest rate costs and as such, no hedge accounting was applied.

Given the size of the Company, the Directors did not delegate the responsibility of monitoring financial risk management to a sub-committee of the Board. The policies set by the Board of Directors were implemented by the Company’s finance department:

(a) Credit risk

The Company’s credit risk was primarily attributable to its trade receivables balance. The amounts presented in the statement of financial position are net of allowances for impairment;

(b) Liquidity risk

Liquidity risk was the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The Company’s financial liabilities included its trade and other payables shown in Note 21;

(c) Interest rate cash flow risk

The Company had interest-bearing assets. Interest bearing assets comprised cash balances and unsecured loans, which earned interest at floating rates.

Capital risk management

The Company monitors capital which comprises all components of equity (i.e., share capital, share premium and retained earnings/losses).

5.   Critical accounting estimates and judgements

The preparation of the financial statements require management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the end of the reporting period. Estimates and judgements are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions.

Information about such judgements and estimates are contained in the accounting policies and/or the notes to the consolidated financial statements. Areas of judgement that have the most significant effect on the amounts recognised in the consolidated financial statements are as follows:

 

Valuation of warrants

The Company estimates the fair value of the future liability relating to issued warrants using the Black-Scholes pricing model taking into account the terms and conditions upon which the warrants were issued, if the warrant was granted on its own.

 

Warrants relating to equity finance are recorded as a reduction of capital stock based on the fair value of the warrants.

 

Loan to associate

Determination as to whether, the loan to associate is recoverable involves management estimates and judgement. Management uses discounted cashflow forecasts of the associate to determine whether an impairment of the loan is required. The Company has considered a range of sensitivities in respect of sales, cost of sales and discount rates and has assumed that the relevant environmental permits will be issued to enable the achievement of sales. The Company has concluded that there is considerable headroom over the carrying value of the loan.

 

Unquoted financial assets

The unquoted financial assets are held at fair value through other comprehensive income. Management determined that the fair value of these financial assets was their cost.

 

Impairment of exploration and evaluation costs

Determination as to whether, and by how much, an asset or cash generating unit is impaired involves management estimates. Management uses the following triggers to assess whether impairment has occurred (the list is not exhaustive):

•     the period for which the entity has the right to explore in the specific area has expired during the period or will expire in the near future and is not expected to be renewed.

•     substantive expenditure on further exploration for and evaluation of mineral resources in the specific area is neither budgeted nor planned.

•     exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially viable quantities of mineral resources and the entity has decided to discontinue such activities in the specific area.

•     sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the carrying amount of the exploration and evaluation asset is unlikely to be recovered in full on successful development or by sale.

6.   Business and geographical reporting

The Group’s chief operating decision maker is considered to be the Executive Directors (the ‘Executive Board’). The Executive Board evaluates the financial performance of the Group by reference to its mineral exploration and battery recycling activities – its reportable segments.

 

Below is a summary of the Group’s results, assets and liabilities by reportable segment as presented to the Executive Board.

 

 

Mineral exploration

Battery recycling

 

Other

Total

 

£000

£000

£000

£000

Year ended 30 June 2022:

Operating expenses

(130)

(1,655)

(1,785)

Total segment operating loss

(130)

(1,655)

(1,785)

 

 

 

 

 

Total segment assets

 

 

 

 

At 30 June 2022

18,572

4,538

1,392

24,502

 

 

 

 

 

 

Total segment liabilities

 

 

 

 

At 30 June 2022

(3,002)

(512)

(3,514)

 

 

7.   Administrative expenses

 

2022

£000

Legal and professional fees

816

Employee benefit expense

443

Advertising and marketing

341

Audit and Tax

76

Depreciation

3

Other administrative expenses

55

1,734

 

Auditors’ remuneration

 

2022

£000

 

Fees payable for the audit of the Group

47

Fees payable for non-audit services – reporting accountant

35

82

 

8.   Employees and Directors

During the period key management personnel were the Directors of the Company

The average number of persons employed by the Company during the period (including Directors that receive remuneration) was 5.

The following table sets out the total employee and Director costs:

2022

£000

Director and consulting fees

473

Wages and salaries

18

Social security costs

41

531

 

The following table sets out the Directors’ remuneration costs:

 

Basic Salary/fees

£’000

 

Pension

£’000

Social

Security

£’000

 

Benefits

£’000

 

Bonus

£’000

 

Off-payroll

£’000

 

Total

£’000

Executive Directors

Robin Brundle

            90

1

12

6

109

Alex Stanbury

133

1

14

6

59

213

Nigel Ruddock

34

3

29

66

James Hannon

James Cable

15

1

16

Lester Kemp

40

1

5

46

Wilson Robb

34

4

38

Non-Executive Directors

Philip Beard

12

12

Nicholas Kounoupias

12

12

Chang Oh Turkmani

Total

346

3

39

12

112

512

The highest paid Director during the period was Alex Stanbury receiving a total remuneration of £213,000.

 

9.   Other income

2022

£000

Management fees

45

Foreign exchange gain

4

49

 

10.  Net finance charges

2022

£000

Interest on loans

46

46



 

 

11.  Taxation

 

2022

£000

Current tax

Deferred tax

Total income tax expense

 

 

 

2022

£000

(Loss) for the period

(1,785)

(Loss) before income taxes

(1,785)

Tax using the Company’s domestic tax rate 19%

(339)

Effect of non-deductible expenses

2

Utilisation of tax losses

Differences in overseas tax rates

2

Tax losses carried forward

335

Total tax expense

 

Effective tax rate

The effective tax rate was 19% (2021: 19%). Tax charges are affected by the mix of profits and tax jurisdictions in which the Group operates. The impact of unrecognised tax losses and non-deductible items increases the Group’s overall effective tax rate.

 

At the period end, the Group had estimated tax losses of £3,365,000 available for carry forward against future trading profits. As legislation has been enacted whereby the corporation tax rate is 25% from April 2023, the tax losses would have resulted in an additional deferred tax asset of £841,000 which has not been recognised in the financial statements due to the uncertainty of the recoverability of the amount.

 

12.  Loss per share

Basic loss per share is calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period.

 

 

2022

 

£000

Loss from continuing operations attributable to equity holders of the company

 

(1,785)

Weighted average number of ordinary shares in issue

 

785,135,966

 

 

Basic and fully diluted loss per share from continuing operations in pence

 

(0.23)



 

13.  Property, plant and equipment – Group

Cost    

Office equipment

£000

Total

£000

9 June 2021

Additions

8

8

30 June 2022

8

8

Depreciation

9 June 2021

Depreciation charge

3

3

30 June 2022

 

3

3

Net book value 30 June 2022

 

5

5

Additions during the period include £4,000 of office equipment from the acquisition of Techmin Limited .

Property, plant and equipment – Company

Cost    

Office equipment

£000

Total

£000

9 June 2021

Additions

3

3

30 June 2022

3

3

Depreciation

9 June 2021

Depreciation charge

1

1

30 June 2022

1

1

Net book value 30 June 2022

2

2

 



 

14.  Intangible assets

 

Cost    

Mineral exploration

£000

Goodwill

£000

Total

£000

9 June 2021

Acquired through business combinations

14,477

2,891

17,368

Additions

1,746

1,746

Disposals

(814)

(814)

30 June 2022

15,409

2,891

18,300

 

Accumulated amortisation

9 June 2021

Amortisation

30 June 2022

Net book value 30 June 2022

15,409

2,891

18,300

 

See note 16 for further details on the mineral resource exploration projects acquired through the acquisition of Emperium, LRH Group, TML and OEL Group.

 

On 20 May 2022, the Company sold 10% interest in Emperium, for a cash consideration of £860,000. The difference between the cash consideration received and the reduction in intangible assets is recognised in retained earnings.

 

15.  Financial assets

Group

2022

£000

Company

2022

£000

1 January 2021

Additions

1,221

30 June 2022

1,221

 

The additions during the period were acquired as part of the acquisition of LRH Group and OEL see note 16 for further information.

 

16.  Investment in subsidiaries

 

On 17 November 2021 the Company acquired 100% of the issued share capital of Emperium 1 Holdings Corporation (Emperium), LRH Resources Limited and its wholly owned subsidiary Asturmet Recursos S.L. (LRH Group), Techmin Limited (TML), Onshore Energy Limited (OEL) and its wholly owned subsidiary Technology Minerals Cameroon (TMC). The consideration to acquire each company except for TML was settled by the issuance of ordinary shares in the Company. See note 24 for further information.

 

On 20 May 2022, the Company sold 10% interest in Emperium, taking its ownership down to 90%.

 

Emperium is a company incorporated in the State of Nevada that owns mineral claims on approximately 13,900 acres in the United States in an area commonly known as the ‘Idaho Cobalt Belt’.

 

LRH is a company incorporated in the Republic of Ireland and engages in mineral exploration, development and extraction and is primarily focused on Battery Metals. LRH owns a 100% interest in fifteen prospecting licences covering an area of approximately 477 sq. km in Ireland and a 100% interest in seven applications for exploration permits, one of which has been granted, in northern Spain.

 

OEL is a company incorporated in England that has applied for exploration permits covering an area of 2,456 square kilometres in Cameroon close to an area commonly known as the ‘Nkamouna cobalt find’.

 

TML is a company incorporated in the England that has entered into option agreements to acquire mining claim rights covering an area of 3,175 acres in Idaho and a working interest in a mining project in South Dakota, United States.

 

The consideration paid and the fair value of the net assets acquired for each of the subsidiaries is as follows:

 

           

 

Emperium

£000

LRH Group

£000

 

TML

£000

 

OEL

£000

 

TMC

£000

Total

£000

Consideration paid in shares

8,400

605

6,720

15,725

Consideration paid in cash

20

20

Total Fair Value of Consideration

8,400

605

20

6,720

15,745

Identifiable assets and liabilities acquired

Intangible assets

258

262

140

660

Financial assets

3

1,218

1,221

Property, plant and equipment

4

4

Trade and other receivables

140

1

141

Cash

8

37

1

46

Trade and other payables

(22)

(470)

(312)

(804)

Less carrying amount of mineral resource projects acquired

258

251

(289)

1,047

1

1,268

Fair value of mineral resource projects acquired

8,142

354

309

5,673

(1)

14,477

Deferred tax on mineral resource projects acquired:

Location

USA

Ireland

UK

UK

Cameroon

Tax rate

21%

12.5%

19%

19%

33%

Deferred tax liability

1,710

44

59

1,078

2,891

Mineral resources project transferred to intangible assets

9,852

398

368

6,751

(1)

17,368

The carrying amounts of the mineral resource projects acquired was considered to be equal to their fair values. £46,000 of cash contributions were made by the subsidiaries acquired during the period.

 

Contribution of the acquisitions to operating, investing, and financing cashflows for the period are as follows:

 

Group

2022

£000

Operating

(394)

Investing

(913)

Financing

Net decrease in cash and cash equivalents

(1,307)

 

 

 

Investment in subsidiaries – Company

Company

£000

9 June 2021

Additions

15,745

Disposals

(840)

30 June 2022

14,905

 

During the period 10% of Emperium was sold for a cash consideration of £840,000.

 

As at 30 June 2022 the company held interests in the following subsidiary companies:

 

Company        

Country of registration

Proportion

held

Nature of business

Techmin Limited

United Kingdom

100%

Mineral exploration

Onshore Energy Limited

United Kingdom

100%

Mineral exploration

Emperium 1 Holdings Corporation

USA

80%

Mineral exploration

LRH Resources Ltd

Ireland

100%

Mineral exploration

Asturmet Recursos S.L.

Spain

100%

Mineral exploration

Technology Minerals Cameroon

Cameroon

100%

Dormant

 

 

17.  Investment in associates

In September 2021 the Company acquired 49% of a battery-recycling business, Recyclus Group Ltd (‘Recyclus’) for nil consideration. Under the equity method the initial investment is recognised at cost being nil.

18.  Loans to associates

During the period the Company provided an unsecured loan to Recyclus as follows:

 

£000

 

Group

 

Company

9 June 2021

Loans acquired

2,909

2,909

Additions

1,629

1,629

30 June 2022

4,538

4,538

Loans to associates generally bear 2% interest. The loan is repayable in monthly instalments from July 2022.

 

 

19.  Trade and other receivables

Group

2022

£000

Company

2022

£000

Non-current assets

Amounts receivable from subsidiary undertakings

1,504

1,504

Current assets

 

 

Other debtors

15

15

VAT receivable

23

27

Prepayments and accrued income

29

29

67

71

The intercompany loan to Techmin Limited included in amounts receivable from subsidiary undertakings was impaired by £462,000 to £746,000 being the amount considered to be recoverable.

 

20.  Cash and cash equivalent

Group

2022

£000

Company

2022

£000

Cash and cash equivalents

371

199

371

199

£46,000 of cash contributions were made by the subsidiaries acquired during the period. See note 16 for further information.

 

21.  Trade and other payables

Group

2022

£000

Company

2022

£000

Trade and other payables

449

310

Taxation and social security

71

71

Accruals

82

66

602

447

 

22.  Borrowings

Group

2022

£000

Company

2022

£000

Amount owed to third parties

21

Total borrowings

21

 

23.  Deferred tax liability

Deferred tax is calculated in full on temporary differences under the liability method.

 

Group

2022

£000

Company

2022

£000

At 1 January 2021

Arising on acquisition of mineral resource projects

2,891

At 30 June 2022

2,891

 

24.  Share capital and share premium

 

Group and Company

Number of ordinary shares of 1p

Share

capital

£000

Share

premium

£000

At 9 June 2021

50,000,000

50

Share issue – placings

66,666,667

66

 1,433

Share issue – deal consideration

807,252,571

807

15,391

Share issue – conversion of CLNs

306,229,366

306

4,887

Share issue – introduction fees

3,733,333

4

80

Share issue – warrants exercised

29,813,941

30

758

Share issue – in lieu of services provided

7,727,715

8

189

Share issue – costs

(1,312)

Fair value of share warrants issued

(1,656)

At 30 June 2022

1,271,423,593

1,271

 19,770

 

The history of the Company’s share capital is as follows:

 

On incorporation

50,000,000 Ordinary Shares of £0.001 each of which 49,999,999 Ordinary Shares were issued to Century Cobalt Corp. and 1 to Alexander Stanbury, who holds his share as nominee for Century Cobalt Corp.

 

Share placing – 17 November 2021

Placing of 66,666,667 Ordinary Shares of £0.001 at a price of £0.0225 (Placing Price) per Ordinary Share raising £1,500,000 before issue costs.

 

Deal consideration paid

17 November 2021

420,000,000 Ordinary Shares of £0.001 at a price of £0.02 per Ordinary Share were issued for a total consideration of £8,400,000 to acquire 100% of Emperium.

 

336,000,000 Ordinary Shares of £0.001 at a price of £0.02 per Ordinary Share were issued for a total consideration of £6,720,000 to acquire 100% of OEL.

 

30,239,131 Ordinary Shares of £0.001 at a price of £0.02 per Ordinary Share were issued for a total consideration of £604,783 to acquire 100% of LRH.

 

16 March 2022

21,013,440 Ordinary Shares at a price of £0.02 per Ordinary Share were issued for a total consideration of £472,499 to acquire 100% Blackbird Creek Property.

 

Conversion of CLNs – 17 November 2021

Refer to note 26.

 

Introduction fees – 17 November 2021

£84,000 was paid by way of issuance of 3,733,333 Ordinary Shares of £0.001 at a price of £0.0225 per Ordinary Share to League of Angels for introduction fees.

 

Warrants exercised – 21 February 2022

23,147,274 warrants were exercised to acquire 23,147,274 ordinary shares at a price of £0.03375 per share.

 

6,666,667 warrants were exercised to acquire 6,666,667 ordinary shares at a price of 0.1p per share.

 

Share issue in lieu of services provided

24 March 2022

1,333,333 ordinary shares issued at a price of £0.0225 per share to United Capital Investments London Limited in settlement of a payment due to UCI for the Company’s wholly-owned subsidiary, Onshore Energy Limited.

 

2,222,222 ordinary shares issued at a price of £0.0225 per share to UCI in settlement of a payment due from the Company to PAI Capital Ltd.

 

2,436,104 ordinary shares issued at a price of £0.0278 per share to Aurum Exploration Limited in settlement of payment due to Aurum for work carried out by Aurum for the Company’s wholly-owned subsidiary, LRH Limited.

 

10 June 2022

603,981 ordinary shares issued at a price of £0.0314 per share to North American Strategic Metals Inc. in settlement of payment due to NASM.

 

1,132,075 ordinary shares issued at a price of £0.0265 per share to a supplier for the provision of consultancy services.

 

25.  Warrants

CLN Warrants

Warrants were issued to the holders of the Convertible Loan Notes (CLN Warrants),that will give them the right to within 2 years from Admission to subscribe for one Ordinary Share in Technology Minerals for each Ordinary Share issued to the loan note holder on conversion of the loan note at Admission, at the Placing Price x 150%.

 

Placee Warrants

Each placee of the £1.5m share placing will have the right to subscribe for one Ordinary Share in Technology Minerals for each placing share issued to the placee at the Placing Price x 150% exercisable within 2 years from Admission.

 

Advisor Warrants

Warrants were issued to the Company’s advisors that will give them the right to within 2 years from Admission to subscribe for Ordinary Shares in Technology Minerals at exercise prices of £0.03375 and £0.001.

 

The fair value of the warrants issued during the period was calculated using the Black-Scholes mode using the following information:

CLN Warrants

Placee and advisor Warrants

Advisor

Warrants

Number of shares that could be acquired on the exercise of the warrant

 

306,229,366

 

72,955,554

 

7,333,334

Fair value of one CLN Warrant

£0.003937

£0.00401

£0.02151

Warrant Share exercise price

£0.03375

£0.03375

£0.001

Date of grant

29/07/2021

17/11/2021

17/11/2021

Time to maturity, years

2

2

2

Share price

£0.0225

£0.0225

£0.0225

Expected volatility*,%

55%

55%

55%

Expected dividend growth rate,%

0%

0%

0%

Risk-free interest rate (3 year bond),%          

0.076%

0.56%

0.56%

 

*Calculation of volatility involves significant judgement by the Directors due to the absence of the historical trading data for the Company at the date of the grant.

 

The fair value of the warrants is £1,656,199 and has been charged to Share premium. See note 24.

 

At 30 June 2022, the Company had outstanding warrants to subscribe for Ordinary shares as follows:

 

Warrant exercise price

Expiry date

Fair value of individual warrant

At 01/07/2021

Issued

Exercised

At 30/06/2022

£0.03375

29/07/2023

£0.003937

306,229,366

306,229,366

£0.03375

17/11/2023

£0.00401

72,955,554

(23,147,274)

49,808,280

£0.001

17/11/2023

£0.02151

7,333,334

(6,666,667)

666,667

386,518,254

(29,813,941)

356,704,313

 

 

 

26.  Convertible loan notes

On 29 July 2021 the Company issued convertible loan notes in 3 tranches: Series A, Series B and Series C. The Series A and Series B CLNs were originally issued by Techmin Limited and on 29 July 2021 the Company assumed all of Techmin Limited’s obligations.

 

The Company raised a total of £5,192,800 before costs.

 

On 17 November the CLNs were converted into the Ordinary Shares of the Company as follows:

CLN Series

 

Amount borrowed

£

 

Discount to Placing Price

%

 

Number of Ordinary shares issued on conversion

Series A

1,762,800

30%

0.0158

111,923,810

Series A

292,500

35%

0.0146

20,000,000

Series B

2,137,500

20%

0.0180

118,750,000

Series C

1,000,000

20%

55,555,556

Total

5,192,800

306,229,366

 

27.  Non-controlling interests

Non-controlling interests that are material to the Group are reflected in the table below.

 

On 20 May 2022 Technology Minerals Plc sold 10% interest in its wholly owned subsidiary Emperium Ltd, a US cobalt/copper projects: the Blackbird Creek Project and Emperium Project (collectively “the Properties”), to Bluebird Metals LLC, taking its ownership down to 90%. The consideration received for the 10% disposal was £860,000.

 

Summarised below is the financial information for Emperium Ltd, before intragroup eliminations together with amounts attributable to NCI:

 

2022

£000

Non-current assets

376

Current assets

Non-current liabilities

Current liabilities

(119)

Net assets

257

Attributable to owners of the parent

231

Attributable to non-controlling interests

26

 

 

Attributable to non-controlling interests

2022

£000

Loss for the year

(3)

Net (decrease)/increase in cash and cash equivalents

 

 

28.  Financial risk management

The Group’s activities expose it to a variety of financial risks which result from its operating and investing activities; market risk (foreign currency exchange risk), liquidity risk, capital risk and credit risk. These risks are mitigated wherever possible by the Group’s financial management policies and practices described below. The Group’s financial risk management is carried out by the finance team led by the Chief Financial Officer and under policies approved by the Board. Group finance identifies, evaluates and mitigates financial risks in close co-operation with the Group’s senior management team.

 

Financial instruments by category

 

Group

Group

2022

£000

Company

2022

£000

Financial assets at amortised costs:

 

 

Trade and other receivables

67

71

Cash

371

199

Loan receivable

4,538

4,538

Financial liabilities at amortised costs:

 

 

Trade and other payables

602

447

Borrowings

21

Financial assets at fair value through other comprehensive income:

 

 

Financial assets

1,221

Investments in equity instruments at FVTOCI are measured at cost, which is considered to be equal to their fair values.

 

Capital risk

The Group’s objectives when managing capital are:

 

·             to safeguard the Group’s ability to continue as a going concern, so that it continues to provide returns and benefits for shareholders;

·             to support the Group’s growth; and

·             to provide capital for the purpose of strengthening the Group’s risk management capability

 

The Group actively and regularly reviews and manages its capital structure to ensure an optimal capital structure and equity holder returns, taking into consideration the future capital requirements of the Group and capital efficiency, prevailing and projected profitability, projected operating cash flows, projected capital expenditures and projected strategic investment opportunities.  Management regards total equity as capital and reserves, for capital management purposes. The Group is not subject to externally imposed capital requirements.

 

Credit risk

Credit risk refers to the risk that the Group’s financial assets will be impaired by the default of a third party (being non-payment within the agreed credit terms). The Group is exposed to credit risk primarily on its cash and cash equivalent balances as set out in note 20 and on its trade and other receivable balances as set out in note 19. The Group’s credit risk is primarily attributable to its other receivables, being royalty receivables. It is the policy of the Group to present the amounts in the balance sheet net of allowances for doubtful receivables, estimated by the Group’s management based on prior experience and the current economic environment. In certain cases, the Group has the right to audit the reported royalty income.

 

For banks and financial institutions, only parties with a minimum credit rating of BBB are accepted. The majority of cash is held with Revolut Limited in the UK.

 

The Directors have considered the credit exposures and do not consider that they pose a material risk at the present time. The credit risk for cash and cash equivalents is managed by ensuring that all surplus funds are deposited only with financial institutions with high quality credit ratings. There are currently no expected credit losses.

 

Liquidity risk

Liquidity risk relates to the ability of the Group to meet future obligations and financial liabilities as and when they fall due. The Group currently has sufficient cash resources to pay the trade and other payables and contingent consideration when they fall due. 

Future expected payments

Group

2022

£000

Trade and other payables within one year

602

Current tax liabilities within one year

 

Foreign exchange risk

 

The Group is exposed to foreign exchange risk arising from currency exposures, primarily with respect to the United States Dollar (USD) and the Euro.

 

The following table highlights the major currencies the Group operates in and the movements against the Great British Pound (GBP) during the course of the year:

Average rate

 

Reporting spot rate

2022

2021

 

Movement

2022

2021

 

Movement

United States Dollar

1.32

1.35

(0.03)

1.22

1.38

(0.16)

Euro

1.18

1.13

0.05

1.16

1.17

(0.01)

 

The Group’s exposure to foreign currency risk based on GBP equivalent carrying amounts of monetary items at the reported date:

                                              2022                       2022

                                              £000                     £000 

USD

 EUR

Cash and cash equivalents

20

Trade and other receivables

1

Trade and other payables

(8)

(105)

Net exposure

(8)

(84)

The Group does not hedge against foreign exchange movements.

 



 

 

Exchange rate sensitivity

 

The Group is mainly exposed to foreign exchange risk on the cash balances and trade and other payables denominated in currencies other than GBP as detailed above.  A +/- 10% change in the GBP:EUR and GBP:USD rate and the impact of a +/- 10% change on the exchange rates on the translation of foreign subsidiaries into the Group’s presentation currency would result in the following changes:

 

2022

£000

 

2022

£000

Profit/(loss)

+10%/-10%

 

Equity

+10%/-10%

USD

(1) / 1

28 / (28)

EUR

(26) / 26

26 / (26)

 

 

29.  Related party transactions

Base salaries paid to the Executive Directors for the year ended 30 June 2022 was £358k. See note 8 for further details.

 

The amounts paid to the Non-Executive Directors for services for the year ended 30 June 2022 was £24k.

 

During the year an introductory fee of 5% was paid, in shares, to PAI.Capital Ltd. as a result of the convertible loan note issued to Kafina Investments LLC in return for £1,000,000. Alexander Stanbury, Robin Brundle and Philip Beard were advisers to PAI.Capital Ltd at the time the note was issued but are no longer advisors to PAI.Capital Ltd.

 

During the year the Company provided a loan of £4.5m to Recyclus Group, an associate. Alex Stanbury is also a Director of Recyclus Group Limited. The interest charged on the loan is 2% per annum and the amount charged for the period was £46,000. See note 17 and 18 for further information.

 

During the year Technology Minerals Plc sold 10% interest in its wholly owned US Blackbird Creek Project and Emperium Project to Bluebird Metals LLC. The beneficial owner is a Non-Executive Director of Technology Minerals Plc. See note 27 for further information.

 

During the period the Company charged £140,000 for the provision of management services to its subsidiaries.

 

During the period the Company provided £1,504,000 of loans to its subsidiaries. The interest charged on the loans was 2% per annum and the amount charged for the period was £20,000. See note 19.

 

As at 30 June 2022 amounts receivable from subsidiary undertaking was as follows:

 

Company

2022

£000

Techmin Limited

746

Onshore Energy Limited

170

Emperium 1 Holdings Corporation

119

LRH Resources Ltd

225

Asturmet Recursos S.L.

244

1,504

 

 

30.  Notes supporting statement of cashflows

Significant non-cash transactions from investing activities are as follows:

 

2022

£000

Equity consideration for the acquisition of subsidiaries

15,725

Equity consideration for the acquisition of mineral resources project

473

Shares issued in lieu of services provided by third parties

269

See notes 16 and 24 for further information

 

Significant non-cash transactions from financing activities are as follows:

 

2022

£000

Conversion of loan notes to equity

5,193

See note 26 for further information.

 

 

31.  Events occurring after the reporting date

On 9 August 2022, the St Patrick licence was extended for three years at the Asturmet Cu-Co-Ni Project in Spain.

 

In October 2022, the Company signed binding Heads of Terms (“HoTs”) agreement to acquire the remaining approximately 51% of shares not already held in Recyclus. The transaction is subject to completion of due diligence and shareholder approval. 

 

32.  Ultimate Controlling Party

The company does not have a single controlling party.

Technology Minerals #TM1 – Result of General Meeting

Technology Minerals Plc (LSE: TM1), the first listed UK company to focus on creating a sustainable circular economy for battery metals, announces that all resolutions put to shareholders were duly passed at the Company’s General Meeting held today. The proxy votes received in advance of the meeting are as follows:

Resolution

Votes for

Votes against

Votes withheld

Total proxy votes (excl. votes withheld)

No. of votes

% of votes cast

No. of votes

% of votes cast

No. of votes

1

557,899,466

99.82

1,019,543

0.18

24,493

558,919,009

2

557,891,466

99.82

1,027,543

0.18

24,493

558,919,009

For further information, please contact:

Technology Minerals Plc

Robin Brundle, Executive Chairman

Alexander Stanbury, Chief Executive Officer

+44 (0) 20 4582 3500

Oberon Investments Limited

Nick Lovering, Adam Pollock

+44 (0)20 3179 0535

Arden Partners Plc

Ruari McGirr, George Morgan

+44 (0)207 614 5900

Gracechurch Group

Harry Chathli, Alexis Gore, Amy Stupavsky

+44 (0) 20 4582 3500

Technology Minerals Plc

 

Technology Minerals is developing the UK’s first listed, sustainable circular economy for battery metals, using cutting-edge technology to recycle, recover, and re-use battery technologies for a renewable energy future. Technology Minerals is focused on extracting raw materials required for Li-ion batteries, whilst solving the ecological issue of spent batteries by recycling them for re-use by battery manufacturers. With the increasing global demand for battery metals to supply electrification, the group will explore, mine, and recycle metals from spent batteries. Further information on Technology Minerals is available at www.technologyminerals.co.uk.

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