RCS - Beowulf Mining PLC - New Site Reserved in the GigaVaasa Area

Beowulf MiningAnnouncement

21/02/2023 07:00

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RNS Number : 5007Q  Beowulf Mining PLC  21 February 2023

 

 

21 February 2023

Beowulf Mining plc

("Beowulf" or the "Company")

New Site Reserved in the GigaVaasa Area for establishing Anode Materials
Production

 

Beowulf (AIM: BEM; Spotlight: BEO), is pleased to announce that the Company's
wholly owned Finnish subsidiary Grafintec Oy ("Grafintec") has signed a site
reservation agreement with the municipality of Korsholm, securing Plot 1,
Block 3017 in the GigaVaasa area, for the establishment of a Graphite Anode
Materials Plant ("GAMP").  The agreement was signed on 13 February 2023 and
the reservation is valid for an initial six-month period from signing, with
the option to extend.

Over the coming months, Grafintec will work closely with the municipality of
Korsholm and other important stakeholders, continue with its Pre-Feasibility
Study ("PFS") announced on 9 January 2023, and in addition parallel
workstreams as part of an Environmental Assessment Impact ("EIA") programme.
Grafintec intends to apply for a long-term site reservation for Plot 1 before
the end of July 2023.

Plot 1 covers an area of approximately 47 hectares and is located immediately
to the south-southeast of the area where FREYR, the battery cell manufacturing
company, has secured land to develop industrial scale battery technology and
production (see FREYR Battery begins preparatory work in Vaasa, Finland |
Gigavaasa
(https://www.gigavaasa.fi/ajankohtaista/freyr-battery-begins-preparatory-work-in-vaasa-finland/)
).

While a number of European graphite anode materials projects are in planning,
there remains a real risk that regional supply will fail to satisfy demand for
several years.  Seeing the opportunity,  Grafintec is collaborating with its
technology partner Qingdao Hensen Graphite Ltd ("Hensen") and the Engineering
Consultancy RB Plant Construction Ltd. ("RB Plant") to fast-track the
development of GAMP. Funding by Business Finland as part of the BATCircle2.0
(Finland-based Circular Ecosystem of Battery Metals) consortium will be used
to develop state-of-the art technological solutions to provide sustainable and
high-quality precursor anode materials to the European battery cell
manufacturing industry.

 

Kurt Budge, Chief Executive Officer of Beowulf, commented:

 

"I am thrilled that Grafintec has secured a new site in the GigaVaasa area, as
the Company seeks to fulfil its downstream ambitions and build a
graphite-based anode materials value chain in Finland.

"The exploration work Grafintec is doing with its upstream assets at Aitolampi
and Rääpysjärvi and study work on the downstream configuration, should see
the Company make significant progress by the mid-year and I am looking forward
to building a fruitful partnership with the municipality in Korsholm and other
players in the GigaVaasa Area.

"The GigaVaasa area is dedicated to the battery value chain and provides
access to renewable energy, well developed infrastructure, a plot area with
room for expansion, as well as possible synergies with other industries as
part of a sustainable green ecosystem.  As Grafintec focuses on Net Zero
operations and its ESG performance, the new site fits perfectly with the
Company's development plans."

 

Rasmus Blomqvist, Managing Director of Grafintec, commented:

 

"The Award of the site reservation with the municipality of Korsholm is a big
step forward for Grafintec and maintains the Company's momentum towards
building a Finnish anode materials value chain.

"Since I started visiting the GigaVaasa area a few years ago, I have always
received a very warm and collaborative welcome, and my impression has only
strengthened during discussions with the municipality of Korsholm over recent
months, which have resulted in this agreement.

The GigaVaasa area is dedicated to the battery value chain and it's important
that Grafintec is strategically part of this, especially when we have a site
so close to key developments, such as FREYR's battery cell factory.

"I look forward to some busy months ahead".

 

European Lithium-Ion Battery and Graphite Anode Market

The Lithium-Ion Battery ("LIB") market is predicted to grow significantly,
reaching an annual global demand of 8,000 gigawatt-hours ("GWh") by 2031 from
a current level of 1,000 GWh (Benchmark Mineral Intelligence, December 2022).
According to McKinsey the market is mainly driven by mobility applications
which are expected to account for approximately 90 per cent of the demand,
most importantly the Electrical Vehicle ("EV") industry, but the demand for
energy storage systems for renewable energy such as wind and solar power will
also play an important role when moving away from non-renewable energy
sources. McKinsey forecast the global battery-value chain is expected to grow
by as much as ten times between 2020 and 2030 reaching an annual revenue of
US$410 billion.

 

Graphite is the single largest component by volume in a LIB which contains
significantly more graphite than lithium, nickel, and cobalt. Currently
graphite, either natural or synthetic accounts for approximately 95 per cent
of the anode market and due to its cost-performance ratio it will remain the
material of choice for anodes for the next decade. The World Bank has said
graphite demand will increase by 500 per cent between 2018 and 2050, while the
global graphite market is expected to reach US$21.6 billion. In Europe the
graphite anode market is expected to grow even faster with an expected annual
growth rate by more than sixteen times from a current level of 84,000 tonnes
to 1.4 million tonnes of graphite anodes by 2031 (Benchmark Mineral
Intelligence, December 2022). Geopolitical tensions, the European Green
Transition, and a focus on sustainable and secure supply-chains, as well as
self-sufficiency, has led countries to re-assess their overreliance on Chinese
supply of strategic materials including graphite.

 

The lack of commercial production of graphite anodes in Europe, and with the
continent aiming to strengthen its domestic raw material supply chain,
together with the predicted market growth is a unique window of opportunity
for Grafintec to establish itself in the graphite anode space.

 

Grafintec's Aitolampi natural flake graphite project with an Indicated and
Inferred Mineral Resource of 26.7 Mt at 4.8 per cent Total Graphitic Carbon
("TGC") for 1,275,000 tonnes of contained graphite (see announcement 30
October 2019) together with its plans to develop the GAMP in the GigaVaasa
area presents a unique opportunity for the Company to achieve its goal to
become the leading European supplier of sustainably produced graphite-based
anode materials.

 

Finnish Graphite Anode Value Chain

The development of downstream capabilities is a key part of Grafintec's
strategy and following the announcement on 26 September 2022 on signing a
Memorandum of Understanding ("MoU") with Hensen, the collaboration between the
companies has proceeded with regards to establishing an anode materials hub in
Finland.

To support a sustainable graphite anode value chain in Finland, Grafintec
continues to focus on expanding its resource footprint; with recently
announced encouraging results from its 100 per cent owned Rääpysjärvi
natural flake graphite exploration project located just eight kilometres
north-northwest of the Company's most advanced natural flake graphite project
Aitolampi.

The Company is evaluating possible operational synergies for future
development of the two sites, given their proximity, such as shared processing
infrastructure. The aim is to provide a secure local and sustainably produced
feed for downstream processing facilities, leveraging renewable power across
and targeting Net Zero CO(2) emissions ("Net Zero") across the supply chain.

While the development of primary raw materials supply takes more time to
permit in Finland, the Company has other initiatives to secure supply, both
natural flake graphite and recycled graphite, to feed downstream processing in
the short term.

In May last year, Grafintec signed an MoU with Dominik Georg Luh Technografit
GmbH ("Technografit"), establishing the basis for a commercial partnership for
securing sustainable supply of natural flake graphite for Grafintec's planned
graphite anode materials plant; samples are now being tested by Hensen and
processed to anode material. Also, the Company has test work programmes on
recycled graphite containing waste to assess whether it can be processed to
suitable feedstock for anode materials production.

Pre-Feasibility Study

On 9 January 2023, Grafintec announced the award of a PFS contract to RB Plant
to assess the technical, economic, statutory, regulatory, and commercial
options for a natural flake graphite micronisation, spheronisation,
purification, and coating plant in Finland.

The study will investigate the Best Available Technology ("BAT") with
consideration for environmental, operational, and financial factors and
performance, for transforming a high-grade natural flake graphite concentrate
to graphite anode material suitable for the European LIB market opportunities
and is targeted for completion during H1 2023.

The PFS is a key part of Grafintec`s strategy to develop a Finnish value chain
for anode materials production, aligned with the objectives of the funding
received from Business Finland as part of the BATCircle2.0 (Finland-based
Circular Ecosystem of Battery Metals) consortium.  BATCircle2.0 is a key
project in Business Finland's Smart Mobility and Batteries from Finland
programmes.

 

About Grafintec

Beowulf Mining's 100 per cent owned subsidiary Grafintec is recognised in
Finland as one of the main companies in the anode space and continues to be
supported by Business Finland, the Finnish governmental organization for
innovation funding and investments.

The Company's most advance natural flake graphite project, Aitolampi, has an
Indicated and Inferred Mineral Resource of 26.7 Mt at 4.8 per cent TGC for
1,275,000 tonnes of contained graphite (see announcement 30 October 2019),
possessing almost perfect crystallinity, an important prerequisite for high
tech applications such as lithium-ion batteries. The Mineral Resource was
estimated by CSA Global of Australia in accordance with the JORC Code, 2012
Edition. In addition to Aitolampi, the Company has other graphite exploration
prospects, including Rääpysjärvi.

On 26 September 2022, Beowulf announced the signing of a MoU with Qingdao
Hensen Graphite Ltd. that includes an agreed framework and key terms on which
both companies are collaborating with regards to establishing an anode
materials hub in Finland.

In 2021, Grafintec was granted EUR 791,000 funding by Business Finland as part
of the BATCircle2.0 (Finland-based Circular Ecosystem of Battery Metals)
consortium. The funding will be used to develop a sustainable technological
solution, utilizing renewable energy, to spheronise and purify graphite within
a Finnish industrial ecosystem, for use in the manufacture of lithium-ion
battery anodes.

The project has three objectives, which are to:

·    Validate a process to support progress to a Bankable Feasibility
Study for construction of a commercial scale unit within three to five years.

·    Secure and protect any arising intellectual property.

·    Deliver a detailed strategic marketing and commercialisation plan.

 

About Korsholm Municipality

The municipality of Korsholm is located in the Ostrobothnian region in Western
Finland. It surrounds the city of Vaasa.

Korsholm has a history that can be dated back to 1348, and the municipality is
in fact celebrating its 675th anniversary in 2023. Korsholm aims to be the
most business-friendly municipality in Finland. In the region of Ostrobothnia,
it is the most business-friendly, according to a recent survey on businesses
and municipalities. Korsholm's focus on circular economy has a prominent place
in the municipal strategy.

 

About Vaasa Region

The Nordic Energy Capital Vaasa is a unique combination of modern
internationalism, young enthusiasm, innovative know-how as well as peace and
tranquility of the sea and the unique nature. In Vaasa Region, energy is a
positive force that is not only visible in business, but also in people's
everyday lives and the development of the city. Technologies are being
developed in the Vaasa region for a cleaner, more sustainable and more energy
efficient world. The region's industry produces more than 30% of Finland's
energy technology exports, a significant part of which is renewable energy
technologies. The largest energy cluster in the Nordics is located in the
Vaasa region. Our work is about new energy technologies, and our passion is to
save the world. www.energyvaasa.fi (http://www.energyvaasa.fi/)

 

About GigaVaasa

GigaVaasa's main goal is to provide a carbon-neutral environment ecosystem for
a competitive battery cluster. We are offering a wide range of different size
of T/KEM sites for battery value chain manufacturers. Through our work, we are
committed on supporting sustainable manufacturing in GigaVaasa
area. www.gigavaasa.fi (http://www.gigavaasa.fi)

 

Enquiries:

 Beowulf Mining plc
 Kurt Budge, Chief Executive Officer        Tel: +44 (0) 20 7583 8304
 Rasmus Blomqvist, MD Grafintec             rasmus.blomqvist@grafintec.com (mailto:rasmus.blomqvist@grafintec.com)

                                            Tel: +358 50 5877246
 SP Angel

 (Nominated Adviser & Broker)
 Ewan Leggat / Stuart Gledhill / Adam Cowl  Tel: +44 (0) 20 3470 0470
 BlytheRay
 Tim Blythe / Megan Ray                     Tel: +44 (0) 20 7138 3204

 

Cautionary Statement

Statements and assumptions made in this document with respect to the Company's
current plans, estimates, strategies and beliefs, and other statements that
are not historical facts, are forward-looking statements about the future
performance of Beowulf. Forward-looking statements include, but are not
limited to, those using words such as "may", "might", "seeks", "expects",
"anticipates", "estimates", "believes", "projects", "plans", strategy",
"forecast" and similar expressions. These statements reflect management's
expectations and assumptions in light of currently available information. They
are subject to a number of risks and uncertainties, including, but not limited
to , (i) changes in the economic, regulatory and political environments in the
countries where Beowulf operates; (ii) changes relating to the geological
information available in respect of the various projects undertaken; (iii)
Beowulf's continued ability to secure enough financing to carry on its
operations as a going concern; (iv) the success of its potential joint
ventures and alliances, if any; (v) metal prices, particularly as regards iron
ore. In the light of the many risks and uncertainties surrounding any mineral
project at an early stage of its development, the actual results could differ
materially from those presented and forecast in this document. Beowulf assumes
no unconditional obligation to immediately update any such statements and/or
forecasts.

 

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