Clean TeQ’s ambitious Sunrise nickel-cobalt-scandium project has launched a major placement to raise a minimum of $150 million at $1.15 per share.
Sunrise, which is located around 350 km from Sydney, is aiming to potentially become the largest non-Congolese source of battery-grade cobalt sulphate and nickel sulphate in the world. In February, the NSW Planning and Environment Department issued mining leases for the Sunrise project area.
Funds raised by this placement will be used to to fast track first production by up to 12 months, funding early works and long lead items at the project including engineering and design work for the process plant and its associated infrastructure; deposits for acid plants, generators and other special equipment; earth works, infrastructure, utilities and an infill cobalt drilling program.
The placement will take place via two tranches, the first being an unconditional tranche of around 87 million shares, and a conditional tranche of 44 million shares to be held at a meeting in April subject to shareholder approval.
Clean TeQ chairman Robert Friedland commented that Clean TeQ was ideally placed to meet the needs of the electric vehicle (EV) revolution as it continued to gain momentum.
“Clean TeQ Sunrise is ideally placed to become a large-scale, low-cost supplier of the key raw materials required for the production of lithium ion battery cathodes,” he said.
“Through this raising, when couple with the progress made on securing long-term project debt support, the company is now well-positioned to develop Clean TeQ Sunrise into one of the world’s leading suppliers of cobalt and nickel sulphate,” added Clean TeQ chief executive officer Sam Riggall.