REG - 80 Mile PLC - Hydrogen Valley Financing Update

80 MileAnnouncement

12/02/2025 07:00

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RNS Number : 7607W  80 Mile PLC  12 February 2025

 

 AIM: 80M

 FSE: S5A

 

12 February 2025

80 Mile PLC / Ticker: 80M / Market: AIM / Sector: Mining

Hydrogen Valley Financing Update

80 Mile plc ('80 Mile' or the 'Company'), the AIM and FSE listed exploration
and development company with projects in Greenland and Finland, notes the
announcement by Hydrogen Valley Ltd ('Hydrogen Valley'), regarding an
exclusive consultancy agreement signed between Hydrogen Valley's subsidiary,
Greenswitch srl ('Greenswitch') and Mendelsohn Development Agency
('Mendelsohn') (the 'Agreement'), in order to progress financing initiatives
for Greenswitch.

As first announced on 19 December 2024
(https://www.80mile.com/regulatory-news/75603) , 80 Mile has the option to
acquire up to a 100% interest in Hydrogen Valley. As announced on 16 January
2025 (https://www.80mile.com/regulatory-news/76674) , the Company has moved to
Stage two of the acquisition, resulting in the acquisition of a 24% interest
in Hydrogen Valley.

The Company remains confident of plant restart in the coming weeks once
feedstock materials are received. The plant, which was closed during 2018 for
refurbishment, is now ready for complete restart and full production ramp up
expected in Q3 2025.

The Company expects to provide updates on feedstock supply and offtake
agreements for biofuels in the next two to four weeks as well as a detailed
operation update.

In addition to the restart of the plant, Hydrogen Valley has been exploring
various grant funding and other financial incentives and in this regard is
pleased to advise the appointment of Mendelsohn.

Agreement Between Greenswitch and Mendelsohn

Mendelsohn is an Italian firm with extensive experience in regulatory,
administrative, and technical aspects associated with applying for and
securing grants and other fiscal incentives from various government agencies
at both regional and national level in the Italian government. Mendelsohn
employs a team of 35 industry professionals including state aid experts,
engineers with experience in various types of industrial projects including
energy based projects and political lobbyists.

Mendelsohn's work will immediately focus on making applications for several
funding possibilities already identified during the last two months that are
most advantageous for our biofuel development plan. Greenswitch's facility,
located in the Basilicata region (the 'Region') of Italy, is currently
undergoing final maintenance programmes to prepare for the start of
production, with a focus on delivering biofuels and sustainable aviation fuels
('SAF') initially, as well as green hydrogen in the future.

Financing Programmes Available to Greenswitch

Following the Agreement with Mendelsohn, Greenswitch believes it is well
positioned to receive funding under one or more programmes mentioned below
within the coming months. It is worth noting that participation in one fund
does not preclude participation in another, therefore smaller programmes
offered by the Region for example would not have a negative impact on larger
funding programmes.

Of the various programmes currently available or upcoming in 2025, the
following are of particular interest to Greenswitch:

Contract for Development through the Ministry of Enterprises and Made in Italy

Managed by state-owned INVITALIA - this programme is always open and is of
particular interest for larger projects such as Greenswitch's SAF
development.  In recent years, over €18 billion have been distributed under
this programme.  As of now, this programme has an additional €6 billion
available for industrial development ranging from a minimum of €20 million
upwards.

EU/Italy Social Cohesion Programme, with a focus on Southern Italy

This includes the Basilicata Region, where the Greenswitch plant is located.
The programme is now open for applications until 8 April 2025. This fund has
€300 million available to be invested in various types of enterprises
operating in the South, under a contract for development procedures, with
incentives ranging from €5-€20 million per applicant/development.

Region of Basilicata Enterprise Assistance Fund

This is expected to open for applicants during the period of March and April
2025 and will consist of a total funding of €291 million. Under this
programme, companies may choose between what is called a MiniPIA for a maximum
of €3 million, or a Mini Regional Contract for Development for up to a
maximum of €5 million. As this programme is being managed under a
"simplified process", funds are expected to be awarded during first half 2025.

Green Hydrogen Grant Programme

This consists of two separate programmes: One at the Regional level of
Basilicata in the amount of €10 million, as pertains to Greenswitch, and
another at the National level.

In this regard, Greenswitch was awarded through the National Recovery and
Resilience Plan (PNRR), €10 million for its green hydrogen development
project. This award expired before Hydrogen Valley was able to close on its
acquisition of Greenswitch last year. Therefore, Hydrogen Valley have
requested that such a grant be reassigned to Greenswitch, and is currently
waiting for a response.

In the meantime, the Region of Basilicata received €10 million from the
Italian Government also for the purpose of green hydrogen development.

Eric Sondergaard, Managing Director of 80 Mile, commented:

"The plant continues to evolve as expected and we are very pleased with
developments to date, financing options available to Greenswitch are extensive
and we are confident of the eventual outcome here. Bringing on Mendelsohn, a
nationally recognised firm with extensive expertise in filing and receiving
grants in Italy is a major step forward for the plants evolution to include
hydrogen and sustainable aviation fuel. Shareholders can look forward to
regular updates on progress with respect to grants and incentive programmes as
well as project updates on Disko and Jameson. 2025 is shaping up to be our
best year to date and I remain confident of success on multiple fronts in the
next 6 months."

 

 Eric Sondergaard           80 Mile plc                      enquiry@80mile.com
 Ewan Leggat / Adam Cowl    SP Angel Corporate Finance LLP   +44 (0) 20 3470 0470

(Nominated Adviser and Broker)
 Megan Ray / Said Izagaren  BlytheRay                        +44 (0) 20 7138 3205

(Media Contact)

 

About 80 Mile Plc:

80 Mile Plc, listed on the London AIM market, Frankfurt Stock Exchange, and
the U.S. Pink Market, is an exploration and development company focused on
high-grade critical metals in Tier 1 jurisdictions. With a diversified
portfolio in Greenland and Finland, 80 Mile's strategy is centred on
advancing key projects while creating value through partnerships and strategic
acquisitions.

The Disko-Nuussuaq nickel-copper-cobalt-PGE project in Greenland is a
primary focus for 80 Mile, developed in partnership with KoBold Metals. 80
Mile, through its wholly owned subsidiary Disko Exploration Ltd., has a
definitive Joint Venture Agreement with KoBold Metals to guide and fund
exploration efforts. The JV has completed intensive analysis and
interpretation of the extensive geochemical, geophysical, and geological data
collected during the previous exploration campaigns. Leveraging KoBold's
proprietary artificial intelligence and machine learning platforms, this
comprehensive analysis has resulted in the identification of seven initial
priority targets within the project area. These seven priority targets exhibit
spatial characteristics indicative of potential deposits on a scale comparable
to renowned mining operations such as Norilsk, Voisey's Bay, and Jinchuan. The
JV is now planning a focused ground-loop electromagnetic survey to refine and
prioritize each locality appropriately.

In Finland, 80 Mile currently holds three large scale multi-metal projects
through its wholly owned subsidiary FinnAust Mining Finland Oy. 80
Mile's Finland portfolio includes the Outokumpu project, where occurences of
industrial gases like helium and hydrogen adds significant economic potential
to the already prospective copper-nickel-cobalt-zinc-gold-silver targets. 80
Mile is conducting further exploration to fully assess these resources.

80 Mile's recent acquisition of White Flame Energy expands its portfolio into
the energy sector, adding large-scale licenses for industrial gas, natural
gas, and liquids in East Greenland. Approved by shareholders in July 2024,
this acquisition diversifies the Company's assets and aligns with its strategy
to contribute to sustainable energy solutions, while also exploring
conventional energy resources.

The Dundas Ilmenite Project, 80 Mile's most advanced asset in
northwest Greenland, is fully permitted and progressing towards near-term
production. With a JORC-compliant Mineral Resource of 117 Mt at 6.1%
ilmenite and an offshore Exploration Target of up to 530 Mt, Dundas is poised
to become a major supplier of high-quality ilmenite. Recent discoveries of
hard rock titanium mineralization, with bedrock samples showing nearly double
the ilmenite content of previous estimates, further enhance the project's
world-class potential. 80 Mile owns 100% of the Dundas Ilmenite
Project under its subsidiary Dundas Titanium A/S in Greenland.

The Thule Copper Project is a significant component of 80 Mile's portfolio in
northwest Greenland, focused on exploring and developing high-grade copper
deposits within the Thule Basin in northwest Greenland. Leveraging existing
infrastructure and exploration credits, the project is strategically
positioned in an underexplored region with substantial mineral potential. 80
Mile's established basecamp at Moriusaq will support cost-effective
exploration, aligning with the Company's broader strategy to secure
high-quality copper and industrial gas projects.

 

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