REG - Alkemy Capital Invs. - FEED Funding and Equity Funding Proposal

Alkemy Capital InvestmentsAnnouncement

31/07/2025 07:01

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RNS Number : 2892T  Alkemy Capital Investments PLC  31 July 2025

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN ARTICLE 7 OF THE
MARKET ABUSE REGULATION NO. 596/2014 ("MAR") AS IN FORCE IN THE UNITED
KINGDOM PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. UPON THE
PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO
BE IN THE PUBLIC DOMAIN.

 

 

31 July 2025

 

Alkemy Capital Investments Plc

 

     FEED Funding and Equity Funding Proposal from Ara Partners

 

Alkemy Capital Investments plc ("Alkemy" or the "Company") (LSE: ALK) (JV2:
FRA), the holding company of Tees Valley Lithium Ltd ("TVL"), is pleased to
announce that it has secured full financing for the FEED (Front-End
Engineering Design Study) of its lithium refinery in Teesside and has received
an indicative term sheet from Ara Partners LLC ("Ara Partners" or "Ara") for
the equity participation of the US$250 million main financing (the "Term
Sheet").

 

HIGHLIGHTS

 

●    FEED study into the proposed 25,000 tpa refinery fully financed by a
£5 million debt facility secured by Founder and Chairman Paul Atherley.

 

●    FEED study is well advanced with Veolia and Wave International
having provided initial process route design based on existing proven
technology. The study is expected to be completed and final investment
decision ("FID") in Q1 2026.

 

●    Non-binding Term Sheet has been received from Ara Partners with a
right of first refusal to invest circa US$100 million equity at the Tees
Valley Lithium level at FID, representing 40% of the total project capital
cost.

 

●    ABG Sundal Collier has previously been engaged as Financial Adviser
and to arrange circa US$150 million debt finance.

 

Funding Secured for FEED Study

 

The Company has secured a £5 million debt facility from a third party London
based debt provider to fund the completion of the FEED study currently
underway with Veolia and Wave International for the first 25,000 tonne per
annum train of the proposed four train refinery (the "Facility").

 

The Facility is a drawdown facility, allowing funds to be accessed in tranches
as needed and as determined by the Company, avoiding equity dilution of TVL
during the FEED phase. The Facility attracts a PIK interest rate of 15% per
annum.

 

The Facility is for a 24-month period and may be converted into Alkemy shares
at a 50% premium to the prevailing share price at the time of each tranche
drawdown.

 

The Facility has been secured by Alkemy Founder and Chairman Paul Atherley,
further reinforcing the Company's commitment to advancing the project through
FID while preserving shareholder value.

 

The Company has issued the lender 129,226 warrants, exercisable at £3.48 per
share, being a 36.5% premium to the closing share price on 30 July 2025 of
£2.55, with a 48-month term.

 

Strategic Term Sheet from Ara Partners

 

Following several months of detailed due diligence, Ara Partners, a global
private equity firm specialising in industrial decarbonisation, has submitted
an indicative term sheet to Alkemy and TVL outlining its intention to lead the
equity investment at the construction stage.

 

Under the terms currently being finalised, Ara have requested a right of first
refusal to provide 100% of the equity capital required for construction,
anticipated to be approximately $100 million.  The remaining ~ $150 million
of total capex is expected to be financed through debt, with ABG Sundal
Collier continuing to work as Alkemy's appointed debt adviser.

 

Whilst the terms of the Term Sheet are currently being finalised, upon
signing, Ara's participation is expected to follow the successful completion
of the FEED study, confirmation by the board to proceed with FID, and
finalisation of technical and commercial milestones, subject to standard due
diligence and internal approvals.

 

As part of the proposed structure, Ara would remain closely engaged with the
TVL team throughout the FEED phase, working in partnership to support project
readiness, de-risk key deliverables, and ensure strategic alignment ahead of
construction.

 

Capital Structure and Development Update

 

The FEED funding facility enables Alkemy to finance the study without issuing
equity at the TVL project level. By funding development directly, Alkemy
retains full ownership of TVL through to FID, avoiding early dilution of its
ownership of the project.

 

This approach allows Alkemy to bring in external equity only at the
construction stage, once value has been established.

 

About Ara Partners

 

Founded in 2017, Ara Partners is a global private equity and infrastructure
firm dedicated to decarbonizing the industrial economy. Ara seeks to build,
scale, and optimize companies with significant decarbonization impact across
the industrial and manufacturing, chemicals and materials, energy efficiency
and fuels, and food and agriculture sectors. The company operates from offices
in Houston, Boston, Dublin and Washington, D.C.. As of December 31, 2024, Ara
Partners had approximately $6.2 billion of assets under management.

 

Alkemy Chairman Paul Atherley commented:

 

"As a team we are absolutely committed to this nationally significant project
and personally I am very happy to be providing the necessary financial
guarantee to ensure that Tees Valley Lithium gets to FID in the coming months.
We are delighted with the support we continue to receive from Ara Partners and
with FEED financing in place, we look forward to finalising the FEED study and
confirming our view that TVL will be amongst the world's lowest capital and
operating cost lithium refineries globally and will be well placed to serve
Europe's rapidly growing OEM and storage markets."

 

Alkemy is pleased to announce that it will host an investor webinar at 12pm
(BST) on Tuesday 05 August 2025 to discuss the recent announcement relating
to the FEED financing and the proposed Ara Term Sheet.

 

The webinar will feature an update from Alkemy Chairman Paul Atherley, and TVL
CEO Vikki Jeckell who will provide an update on the Company's progress and
future outlook.

 

The event will also include a live Q&A session, offering shareholders and
investors the opportunity to engage directly with the leadership team.

 

Webinar Details:

 

·      Date: Tuesday 05 August 2025

·      Time: 12pm (BST)

·      Duration: 45 minutes

·      RegistrationLink:
https://us02web.zoom.us/webinar/register/WN_L4ss1hPrQtKS_53rPp5gxA#/registration
(https://us02web.zoom.us/webinar/register/WN_L4ss1hPrQtKS_53rPp5gxA#/registration)

 

 

The Company encourages both shareholders and interested parties to register
and attend this informative session.

 

Questions can be pre-submitted via email to: info@teesvalleylithium.co.uk
(mailto:info@teesvalleylithium.co.uk)

 

 

 

Further information

 

For further information, please visit Alkemy's
website: www.alkemycapital.co.uk (http://www.alkemycapital.co.uk/)  or TVL's
website www.teesvalleylithium.co.uk (http://www.teesvalleylithium.co.uk/) .

-Ends-

 Alkemy Capital Investments Plc  Tel: 0207 317 0636

                                 info@alkemycapital.co.uk (mailto:info@alkemycapital.co.uk)
 Zeus Capital                    Tel: 0203 829 5000

 

ABOUT US

 

Alkemy Capital Investments plc: Alkemy is focused on the development of
critical mineral infrastructure to support the global energy transition.
Through its wholly owned subsidiary, TVL, Alkemy is leading the way in
establishing Europe's first independent lithium hydroxide refinery.

 

Tees Valley Lithium Limited: TVL is committed to supplying battery-grade
lithium chemicals to meet the growing demand of the electric vehicle supply
chain in Europe. Strategically located at in Teesside, UK, TVL is developing a
low-carbon, independent lithium supply chain for European battery
manufacturers.

 

 

Forward Looking Statements

 

This news release contains forward‐looking information. The statements are
based on reasonable assumptions and expectations of management and Alkemy
provides no assurance that actual events will meet management's expectations.
In certain cases, forward‐looking information may be identified by such
terms as "anticipates", "believes", "could", "estimates", "expects", "may",
"shall", "will", or "would". Although Alkemy believes the expectations
expressed in such forward‐looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance and
actual results or developments may differ materially from those projected. In
addition, factors that could cause actual events to differ materially from the
forward-looking information stated herein include changes in market
conditions, changes in metal prices, general economic and political
conditions, environmental risks, and community and non-governmental actions.
Such factors will also affect whether Alkemy will ultimately receive the
benefits anticipated pursuant to relevant agreements. This list is not
exhaustive of the factors that may affect any of the forward‐looking
statements. These and other factors should be considered carefully, and
readers should not place undue reliance on forward-looking information.

 

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