REG - GreenRoc Mining PLC - Grant Awarded by UK Automotive Transformation Fund

GreenRoc Strategic MaterialsAnnouncement

09/10/2023 07:15

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RNS Number : 0454P  GreenRoc Mining PLC  09 October 2023

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

 

9 October 2023

GreenRoc Mining plc

("GreenRoc" or the "Company")

 

Amitsoq Update

GreenRoc Awarded Grant from UK Automotive Transformation Fund

 

GreenRoc Mining plc (AIM: GROC), a company focused on the development of
critical mineral projects in Greenland, is delighted to announce that it has
been awarded a grant of approximately £250,000 by the Automotive
Transformation Fund ("ATF") in the UK under its recently closed Feasibility
Study Competition. The grant will part-finance a feasibility study into the
establishment of a graphite spheronisation processing plant in the UK to
produce active anode material from graphite concentrate delivered from
GreenRoc's Amitsoq Graphite Project in southern Greenland ("Amitsoq" or the
"Project").

 

Highlights

 

·     The ATF has awarded GreenRoc a grant of approximately £250,000 to
part-finance a feasibility study into establishing a UK graphite
spheronisation processing plant to produce active anode material in the form
of coated spherical purified graphite (cSPG) from graphite concentrate shipped
from Amitsoq.

·     The ATF funding programme is administered by the Advanced Propulsion
Centre UK (APC), which deploys government funding and support to accelerate
the transition to a net-zero automotive industry in the UK.

·    The ATF has expressed the view that GreenRoc's feasibility study
project could have significant strategic benefits for the UK in terms of
security of supply and achieving resilience in the EV battery sector.

·     In GreenRoc's view, the grant funding represents a step forward in
establishing a robust supply chain of anode material for EV batteries and fuel
cells to bolster the British car industry.

·      The feasibility study starts in Autumn 2023 and is expected to be
completed by May 2024.

·   GreenRoc will act as project manager, with input from four expert
consultants: Benchmark Mineral Intelligence, SLR, ProGraphite and Decision
Risk Analytics.

 

GreenRoc's CEO, Stefan Bernstein, commented:

 

"It is with great pleasure that we can announce today that Great Britain's
Automotive Transformation Fund has awarded GreenRoc a significant grant
towards the funding of a feasibility study into the manufacturing of active
anode material or cSPG in the UK using graphite concentrate from GreenRoc's
world-class Amitsoq Deposit in southern Greenland.

 

"This grant funding represents a step forward in establishing a robust supply
chain of anode material for EV batteries and fuel cells and will also help
bolster the British car industry's competitiveness in the race to supply
electric vehicles to the European market.

 

"I'm particularly happy as this grant shows much-welcomed government support
for our ambition to supply the European gigafactory industry with anode
material sourced from GreenRoc's responsibly mined graphite deposit in
Greenland.

 

"Based on the outcome of the feasibility study, GreenRoc hopes to be able to
make a strong business case for potential joint venture partners and investors
to join forces with us to make the production of anode material in the UK a
reality."

 

APC Automotive Transformation Director Julian Hetherington said:

 

"The Automotive Transformation Fund is supporting new projects to scope out
opportunities within the wider supply chain that could lead to significant
investments in manufacturing here in the UK. Gigafactories are only part of
the story, as much of the supply of materials is currently imported from
carbon-intensive sources. If the sector is to transition to net zero and
localise production, this funding can help to show where the potential is for
expanding the UK's capability."

 

 

Further Details

 

The UK's ability to secure the supply of active anode material in the form of
coated spherical purified graphite (cSPG) is a key requirement for the
production of electric vehicle ("EV") batteries in the UK and a critical
element, therefore, in securing the future of the UK car industry.

 

The ATF is a funding programme created to support large-scale
industrialisation and is administered by the Advanced Propulsion Centre UK,
(APC) which administers government funding and support to accelerate the
transition to a net-zero automotive industry in the UK. Its feedback following
GreenRoc's application for grant funding included comments that GreenRoc's
feasibility study is "an important, timely & highly relevant study that
could yield whether the UK can gain some resilience in the EV battery sector"
and that "the project plans to proceed at a fast pace towards a production
facility in the UK and could have significant strategic benefits for security
of supply with economic and environmental advantages."

 

As a UK public company, with a world-class graphite deposit located within a
few days' shipping distance from the UK, GreenRoc is uniquely placed to assist
in the delivery of substantial, secure domestic production of cSPG for the
UK's battery and EV industries.

 

GreenRoc's feasibility study will assess the fundamental requirements of cSPG
processing in the UK which encompass micronization, classification,
spheronization, purification and coating of graphite. The Feasibility Study
will include processing unit options, plant design, and power consumption, as
well as a cost model and net present value (NPV) calculation. It will also
include an advanced risk assessment model to address all stages of the
decision-making process from pilot plant set-up to a definitive feasibility
study for a full-scale cSPG processing plant in the UK.

 

 

Further details regarding the grant and feasibility study:

 

-    The grant comprises a total contribution of £258,478 towards the
feasibility study.

-   The total amount available under this call of the Feasibility Study
Competition was £2 million in aggregate, with each grant being in the range
of £100,000 to £350,000, to cover a maximum of 70% of the costs of each
successful applicant.

-   Out of the total budgeted costs for the GreenRoc feasibility study, 63%
will be covered by the ATF grant with GreenRoc covering the balance.

-    The feasibility study starts this Autumn, and is expected to be
finalised by May 2024.

-   GreenRoc will act as the Project Manager for the feasibility study, with
significant contributions from four expert consultants, namely Benchmark
Mineral Intelligence, SLR, ProGraphite and Decision Risk Analytics.

 

About GreenRoc's Feasibility Study Partners

 

Benchmark Mineral Intelligence (BMI). This UK-based market research company
has considerable expertise within the battery raw materials value-chain, cost
analysis and market predictions. Its products are well known for its
robustness and are used all over the world by researchers, industry and
governmental bodies alike.

 

SLR is a UK-based consultancy with long-standing expertise in the mineral
processing industry, having conducted many mine and mineral processing
feasibility studies over the years. The SLR team taking part in the proposed
study has a strong background in mineral processing and set-up of processing
plants and the costing of construction and operational stages.

 

ProGraphite GmbH, a leading expert on graphite research and industrial
application and GreenRoc's long-standing adviser in relation to Amitsoq, will
supply the specifications of various processing plant options on the market
today as well as an expert evaluation of the quality and performance of
European alternatives currently under development.

 

Decision Risk Analytics is a Danish-based risk assessment consultancy which
applies stochastic modelling to investigate a range of possible outcomes and
understand the impact of uncertainty. Using a coherent system of simulation
software, the results generated will form the foundation for informed
decision-making and continuous improvement within the feasibility study.

 

About the Automotive Transformation Fund

 

The Automotive Transformation Fund (ATF) is a funding programme created to
support large-scale industrialisation. It is administered by the Advanced
Propulsion Centre, a joint venture between the UK government and the
Automotive Council dedicated to accelerating the transition to a net-zero
automotive industry in the UK. Under the ATF, up to £850 million of funding
will be invested in developing a high-value end-to-end electrified automotive
supply chain in the UK. The Fund is highlighted as an important mechanism to
reach targets in the UK Government's 10-Point Plan for a green industrial
revolution and its Transport Decarbonisation Plan.

 

The ATF is dedicated to supporting the large-scale industrialisation of an
electrified supply chain. The programme will support strategically important
capital and R&D investments in the UK and will begin by focusing on
companies involved in batteries including cells ('Gigafactories'), electric
machines and drives, power electronics, fuel cells and the upstream supply
chain for any of the foregoing.

 

Forward Looking Statements

 

This announcement contains forward-looking statements relating to expected or
anticipated future events and anticipated results that are forward-looking in
nature and, as a result, are subject to certain risks and uncertainties, such
as general economic, market and business conditions, competition for qualified
staff, the regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political jurisdiction,
uncertainties regarding the results of exploration, uncertainties regarding
the timing and granting of prospecting rights, uncertainties regarding the
timing and granting of regulatory and other third party consents and
approvals, uncertainties regarding the Company's or any third party's ability
to execute and implement future plans, and the occurrence of unexpected
events.  Actual results achieved may vary from the information provided
herein as a result of numerous known and unknown risks and uncertainties and
other factors.

 

 

**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

  SP Angel (Broker)                                                           +44 20 3470 0500

  Ewan Leggat, Charlie Bouverat

  St Brides Partners Ltd (Financial PR & IR)            Paul                  +44 20 7236 1177
 Dulieu/Isabel de Salis/Isabelle Morris

 

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.

 

About Amitsoq

Amitsoq is located in the Nanortalik region of southern Greenland and has been
confirmed as one of the highest-grade flake graphite projects in the world.
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.

 

Key points about Amitsoq:

·      GreenRoc's primary focus at Amitsoq is on developing the Amitsoq
Island Deposit, which 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.

·      Deposits with compliant resources above 20% contained graphite
grade are scarce, with the average global grade of graphite resources being
just 8.45% (according to S&P Global).

·      Independent micronisation and spheronisation test work has proven
that Amitsoq graphite can be easily upgraded to high-grade anode-quality
graphite, otherwise known as high purity spherical graphite or cSPG, a key raw
material in the manufacturing of EVs.

·      In GreenRoc's test work programmes, Amitsoq spheronised graphite
has achieved higher than 99.95% purity with relatively little energy input and
processing and using the milder alkaline purification method compared to the
industry standard hydrofluoric acid, boding well for future production costs
and sustainability commitments.

·      Significant further 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 on GreenRoc's licence
package.

·      The 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.

·      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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