REG - Beowulf Mining PLC - Grafintec Strategy Update

Beowulf MiningAnnouncement

04/09/2023 07:00

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RNS Number : 1955L  Beowulf Mining PLC  04 September 2023

4 September 2023

Beowulf Mining Plc

 

("Beowulf" or the "Company")

 

Grafintec Strategy Update

 

Beowulf (AIM: BEM; Spotlight: BEO), is pleased to provide an update on its
wholly owned Finnish subsidiary, Grafintec Oy ("Grafintec"), where it is
implementing a two-phased strategy to create a graphite processing facility
and extract graphite from its own mining projects, thus positioning Grafintec
as a leading player in the European graphite material supply chain.

 

Hub for anode materials

 

Anodes, manufactured from graphite, are a key component of batteries,
therefore making graphite a strategically desirable raw material in the
rapidly growing battery market and listed as a Critical Raw Material ("CRM")
by the European Union ("EU"). Anodes are oxidising metals, assisting electrons
along a conductor to the cathode, making it fundamental in accessing the
electricity that makes batteries work. Graphite is considered an ideal anode
for lithium-ion batteries due to its key material properties including high
energy density, power density and life cycle. Recent research indicates that
graphite has the potential to further improve lithium storage performance,
making it increasingly more important for electric vehicles and energy storage
as part of the green energy transition. Currently, there is no European
manufacturer of anodes, however, demand is gradually expanding via the many
battery companies that are being established.

Grafintec, is currently working to establish a facility for processing
graphite, with the final product primarily tailored for anode manufacturing,
the Graphite Anode Materials Plant ("GAMP"). This product is technically
referred to as coated spherical graphite, which increases a battery's
competitiveness in terms of performance and cost.

The planned facility, located in the GigaVaasa area in the municipality of
Korsholm, western Finland, will begin processing imported material with the
aim to process Grafintec's own, mined material in the future. The GigaVaasa
area is an industrial zone focused on energy storage and battery technologies
and therefore an ideal location for Granfintec's graphite processing plant.

 

Current status

 

On 20 July 2023, Grafintec announced it had completed the first stage of the
process design, including a preliminary review of the economics, as part of
the Pre-Feasibility Study ("PFS") for the GAMP. The initial results of the
study confirm the technical and financial feasibility of the GAMP, including
robust preliminary economics. The PFS supports the progress of the project to
the next stage of development, including coating testwork at laboratory and
pilot plant scale in combination with optimisation of the process design.

 

The Company recently appointed AFRY Finland Oy to undertake the Environmental
Impact Assessment ("EIA"), which is aimed to be completed in Q1 2024, followed
by the preparation of the environmental permit application submission. In
parallel with the workstreams related to the EIA, Grafintec is also preparing
of a road map for the Feasibility Study ("FS") for the GAMP and other
activities involved in establishing the plant. The outcomes of the roadmap
review are anticipated to be announced in the coming months.

 

Self-sufficient manufacturer

 

The EU, as part of its CRM initiative, has set a target that by 2030, 40 per
cent of all processed graphite used within the EU is produced by the EU and 10
per cent of all graphite used is extracted from within the EU. In addition to
the processing facility at GigaVaasa, Granfintec is also intending to extract
graphite from its own natural graphite projects, and is therefore very
well-placed to contribute to achieving these targets.

 

 

To advance Grafintec`s most advanced graphite exploration project, Aitolampi
in the municipality of Heinävesi in Eastern Finland, the Company has
appointed Steinert GmbH to carry out sorting testwork on the graphite ore and
waste materials from the deposit using dry methodologies such as magnetic and
induction separation technologies. The aim of the testwork is to investigate
environmentally friendly and low-cost processes to produce a high-grade
graphite pre-concentrate before flotation, as well as optimising and reducing
the costs and environmental impact of the waste rock and tailings management.
The Company is also reviewing its exploration work plans for its other
graphite projects.

 

Rasmus Blomqvist, Managing Director of Grafintec, commented:

 

"Benchmark Mineral Intelligence has reported that the battery industry in
Europe is predicted to require at least 1.3 million tonnes of graphite anodes
by 2030, which can be compared to today's requirement of about 160,000 tonnes.
The EU would like a secure supply of both graphite and anodes to meet this
demand, rather than relying on imported graphite, predominantly from China.

"By entering this growing market at an early stage, Grafintec can assume a
strong position in anode manufacturing. This, coupled with future production
from its own projects, will enable Grafintec to become a self-sufficient
manufacturer of high-quality anode material for the European battery
industry."

 

Ed Bowie, CEO of Beowulf, commented:

 

"With the battery market rapidly growing, Grafintec's two-phased strategy will
enable it to produce the materials required by the increasing number of
battery companies and provide the industry with access to European mined and
processed graphite. Our aim is to position Grafintec as a leading European
supplier of graphite material.

"I look forward to providing shareholders with further updates from Grafintec
and across our portfolio in the coming months."

 

 

 

Enquiries:

 Beowulf Mining plc
 Ed Bowie, CEO                              ed.bowie@beowulfmining.com
 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

 

 

 

About Beowulf Mining plc

 

Beowulf Mining is a mining company with main activities in exploration and
development in Sweden, Finland and Kosovo. Beowulf's portfolio is diversified
by commodity, geography and stage of development of the
projects and consists primarily of iron ore, graphite, gold and base metals.
Beowulf Mining is headquartered in London, England.

 

 

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
forecast.

 

 

 

 

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