REG - GreenRoc Mining PLC - Financing Letter of Interest

GreenRoc Strategic MaterialsAnnouncement

15/04/2024 07:00

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RNS Number : 5301K  GreenRoc Mining PLC  15 April 2024

GreenRoc Mining Plc / EPIC: GROC / Market: AIM / Sector: Mining

15 April 2024

GreenRoc Mining plc

("GreenRoc" or the "Company")

 

Financing Letter of Interest from US EXIM Bank

 

GreenRoc Mining plc (AIM: GROC), a company focused on the development of
critical mineral projects in Greenland, is pleased to announce the receipt of
a Letter of Interest ("LOI") from the Export-Import Bank of the United States
("US EXIM Bank").  US EXIM Bank is the official export credit agency of the
United States, an independent Executive Branch agency with a mission of
supporting American jobs by facilitating the export of US goods and services.

In the LOI,  US EXIM Bank indicates its willingness to consider financing
GreenRoc for up to US$3.5M of US export contracts relating to goods and
services ordered by the Company. Such contracts could relate to the conduct of
Pre- or Definitive Feasibility Studies ("PFS" and "DFS" respectively) for
GreenRoc's Amitsoq Graphite Mine in South Greenland and/or a DFS of the
Graphite Active Anode Processing Plant, which funding would fall within US
EXIM Bank's Engineering Multiplier Program. Another contract which could be
eligible for US EXIM Bank financing relates to the processing of large
graphite bulk samples by US-based contractors.

Any US EXIM Bank finance transaction will require a specific application to be
made, which would be subject to US EXIM Bank's standard due diligence process
prior to the issuing of a final financing commitment (which would be subject
to a maximum five-year repayment term). The LOI is valid until 14 April 2025.

 

GreenRoc's CEO, Stefan Bernstein, commented:

"This LOI from US EXIM Bank represents a strong show of support for our
Amitsoq project from one of the key financing bodies of the US Government
involved in the roll-out of loans and other funding support under the US
Inflation Reduction Act to entities, like Greenroc, which are developing
projects which will deliver critical raw materials to Western economies. A
successful application for up to US$3.5m of funding would allow us to
undertake extensive and costly parts of our work programme over the coming
couple of years and to achieve important milestones such as the PFS and DFS
and the processing of large bulk samples of graphite ore, all of which are
critical paths to production. As such, we expect to proceed with an
application to US EXIM Bank in the near future.

"With the US Inflation Reduction Act's rules of origin in relation to graphite
set to be implemented in the near future, we expect to see increased interest
from US industries in securing friendly sources of graphite, and so this LOI
from US EXIM Bank is timely."

 

About US EXIM Bank

US EXIM Bank is the official export credit agency of the United States. It is
an independent Executive Branch agency with a mission of supporting American
jobs by facilitating the export of U.S. goods and services.

 US EXIM Bank has special initiatives in place to increase financing for US
exports of goods and services that are environmentally beneficial,
particularly related to renewable energy.

By complementing EXIM Bank's foreign buyer financing programs, US EXIM Bank
can spur growth and security of critical supply chains while continuing to
meet its core mission of supporting US jobs.

US EXIM Bank's Engineering Multiplier Program ("EMP") is designed to generate
additional exports of US goods and services overall (the "multiplier effect"),
since the foreign buyer is more likely to procure US equipment and
construction services for a project for which US engineers, designers,
architects and environmental analysts undertook the feasibility study, design
and other pre-project work.

The EMP will finance feasibility studies, pre-construction design,
engineering, architectural and environmental services undertaken prior to
commencement of the implementation phase of a physical project, supporting the
award of major equipment supply and construction contracts.

 

About the US Inflation Reduction Act and graphite

An important component of the 2022 US Inflation Reduction Act ("IRA", which is
a United States federal law aimed to curb inflation by investing into, amongst
others, domestic energy production while promoting clean energy) is the
introduction of a US$7,500 tax credit for new electric vehicles introduced in
2023, with certain requirements to be fulfilled for a specific car to be
eligible for the credit: From 2025 no 'anode on foil' (battery anodes produced
with graphite) product can come from a 'Foreign entity of concern' which
includes China, and from 2026 no graphite in any form can come from a 'Foreign
entity of concern'.

**ENDS** 

For further information, please contact: 

    GreenRoc Mining Plc                                          +44 20 3950 0724

    Stefan Bernstein, CEO 

  
    Cairn Financial Advisers LLP (Nomad)                         +44 20 7213 0880

    James Caithie / Sandy Jamieson / Louise O'Driscoll 

  
    Oberon Capital (Broker)                                      +44 20 3179 5300

    Nick Lovering / Adam Pollock

   
    St Brides Partners Ltd (Financial PR & IR)                   +44 20 7236 1177

    Paul Dulieu / Isabel De Salis / Isabelle Morris             greenroc@stbridespartners.co.uk

  

 

About GreenRoc

GreenRoc Mining plc is an AIM-quoted company which is developing mining
projects in Greenland in critical, high-demand and high-value minerals. Led by
a group of highly experienced mining industry professionals, GreenRoc has 100%
ownership of the following high-grade critical mineral projects both of which
benefit from defined Resources:

 

·     The Amitsoq Graphite Project, the Company's flagship project and
one of the highest-grade graphite deposits in the world with a combined
Measured, Indicated and Inferred JORC Resource of 23.05 million tonnes (Mt) at
an average grade of 20.41% graphite, giving a total graphite content of 4.71
Mt; and

 

·     The Thule Black Sands Ilmenite Project ('TBS'), which has an
initial Mineral Resource of 19Mt at 43.6% Total Heavy Minerals with an in-situ
ilmenite grade of 8.9%.

 

Key Points about Amitsoq, GreenRoc's Flagship Asset

1.    Amitsoq is located in the Nanortalik region of southern Greenland, in
year-round ice-free waters and on the same latitude as far northern
Scotland.

2.    GreenRoc is focused on fast-tracking the development of Amitsoq into
a producing mine in the shortest possible timeframe to meet critical demand
from Electric Vehicle ('EV') manufacturers in Europe and North America for
new, high grade and conflict-free sources of graphite.

3.   The Amitsoq Island Deposit has a total inferred, indicated and measured
JORC Resource of 23.05 million tonnes (Mt) at an average grade of 20.41%
Graphitic Carbon ("C(g)"), giving a total graphite content of 4.71 Mt. This
makes Amitsoq one of the highest-grade graphite projects in the world.

4.   Significant further resource upside exists at Amitsoq as the Amitsoq
Island Deposit is open in at least two directions, with potential for
considerable further expansion via the similarly high-grade Kalaaq Mainland
Deposit as well as a series of other high-grade targets within GreenRoc's
licence package.

5.   The Amitsoq Island Deposit was in small-scale production about 100
years ago, and there remains considerable underground mine development in
place from that time, which will be of considerable benefit to GreenRoc in the
mine construction phase.

6.   In GreenRoc's test work programmes:

a.   Micronisation and spheronisation test work has proven that Amitsoq
graphite can be readily upgraded to high-grade, anode-quality graphite, known
as high purity spherical graphite or cSPG, a critical component in the Li-ion
battery of an EV.

b.   Amitsoq spheronised graphite has achieved higher than 99.95% purity
with relatively little energy input and processing and using a milder alkaline
purification method compared to the industry standard hydrofluoric acid,
boding well for future production costs and sustainability commitments.

c.   Electrochemical testing of Amitsoq graphite anode material within a
test Li-ion battery cell has shown that it performs very well, in part due to
its good crystallinity.

7.   The results of a Preliminary Economic Assessment (or PEA) for Amitsoq
released on 31 October 2023 give a post-tax NPV8 for the Project of US$179M,
an IRR of 26.7% and capex estimated at US$131M (including a 25%
contingency).  These figures solely relate to the economics of a mining and
primary processing operation in South Greenland and do not take into account
any potential upside from a downstream processing operation which GreenRoc
intends to establish in Europe or the USA.

8.   In relation to that downstream business, GreenRoc is currently
undertaking a Feasibility Study into the establishment of a graphite
spheronisation processing plant to produce cSPG from graphite concentrate
delivered from Amitsoq. This Feasibility Study, which is expected to be
completed in H1, 2024, has been part-financed by a grant of approximately
£250,000 from the UK's Automotive Transformation Fund.

9.   Following a detailed evaluation process, the European Raw Materials
Alliance has expressed its support of GreenRoc and its Amitsoq graphite
project, stating that: "GreenRoc's graphite resource is of global importance
and, together with the Company's strategy, will enable the European Union to
achieve a certain level of independence for the electrical vehicle supply
chain. ERMA has approved the Amitsoq Graphite project and will engage to
support its development and financing to produce these critical raw materials
for the benefit of the European Union goals." (see RNS dated 8 February 2023).

 

 

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