Proposed Acquisition

Technology Minerals Plc (LSE: TM1), the first listed UK company to focus on creating a sustainable circular economy for battery metals, is pleased to announce that it has signed binding Heads of Terms (“HoTs”) to acquire the remaining issued share capital of Recyclus Group Limited (“Recyclus”) for new shares in the Company (the Proposed Transaction). The Company currently holds 48.35% of the issued share capital of Recyclus.

Subject to the completion of due diligence, which is imminent, the Proposed Transaction will be satisfied by the allotment and issue to the shareholders of Recyclus on completion of 921,544,596 new ordinary shares of £0.001 each in the capital of the Company (“Consideration Shares”). For this purpose, the value of each Consideration Share will be 4.32 pence. The Consideration Shares will be allotted to the Sellers in proportion to their respective holdings of Recyclus shares. Post-acquisition, Recyclus will be accounted for on a consolidated basis.

sustainable, next generation, recycling technologies.

Recyclus is well positioned to take advantage of the growing demand for Li-ion and lead-acid batteries through retrieval, recycling, and repurposing of used batteries.

The combination of the two businesses offers a differentiated, IP protected exposure to battery processing, aligning the enlarged business with the energy transition taking place and the circular economy.

The primary revenue stream is expected to be direct sales of recovered materials, driving a cashflow and value chain lock-in to support leadership positioning. Other revenue-generating opportunities include finite material extraction and battery reuse.

The Directors believe there is an estimated US$6bn opportunity from lithium battery recoverable materials by 2030, and a US$45bn second-life battery applications market.

Recyclus plans to open ten battery recycling plants, five Li-ion and five lead-acid, over the next six years, with the first two expected to open in the UK once final EA approval comes through.

Recyclus’ first Li-ion recycling plant is located in Wolverhampton, West Midlands, and is capable of recycling 8,300 tonnes of Li-ion per year. Using UK-manufactured technology and physical separation processes, Recyclus is able to accept the five key lithium-ion chemistries, for recycling and processing into ‘black mass’.

The first lead-acid plant, located in Tipton, West Midlands, is capable of recycling 16,000 tonnes in the first full year of production. The Environment Agency has awarded Recyclus an environmental permit at the Tipton plant, allowing for on-site treatment and processing of lead-acid batteries, providing the critical legal foundation to complete the sub-licences and enable full scale automated operations to commence.

In addition, Recyclus recently received a UN-standard certification for its industry-leading Halo battery boxes for the transportation of Li-ion batteries, opening a new revenue stream in domestic and international markets.

The Proposed Transaction, if completed, will result in the shareholders of Recyclus having a significant minority interest in the enlarged group.

Recyclus summary of operations and rationale for the Proposed Transaction Recyclus provides a national recycling initiative that supports the transition to carbon neutrality. Recyclus’ battery recycling capacity will prove essential in the shift from fossil fuels to electric transportation. Through its strategic support, Recyclus is an integral component to the recycling of Li-ion and lead-acid batteries and is a significant contributor towards the circular economy of battery metals.

The acquisition strengthens Technology Minerals’ balance sheet and provides early cashflow from recycling operations controlled by Technology Minerals.

Recyclus has developed a proprietary Li-ion battery processing plant and has a patent application in progress for de-sulphurising lead paste.

With battery recycling expertise ahead of competitors which provides Technology Minerals with first mover advantage in the UK.

Positions Technology Minerals to expand recycling operations in Europe and the USA.

Recyclus Group Structure

Recyclus Group Limited
Recyclus is focusing on the delivery of national end-to-end recycling of Li-ion and lead-acid batteries, to drive the move towards electrification, and more environmentally friendly consumption. Recyclus has two subsidiaries, Libatt Recycling Ltd and Halo Battery Recycling Ltd.

Libatt Recycling Ltd
LiBatt, a Recyclus group company, is the UK’s first industrial-scale Li-ion battery recycler. LiBatt’s ambition is to support the circular economy, increase efficiencies, and reduce the carbon footprint within the Li-ion battery industry.

Halo Battery Recycling Ltd
Halo, a Recyclus group company, is committed to increasing efficiencies within the lead-acid recycling industry, to enable resources to be kept in use for longer to minimise waste and reduce environmental impacts of spent batteries. As part of the Recyclus group service, Halo manufacture cutting-edge, ADR compliant storage and transportation boxes for the safe and secure movement of hazardous spent Li-ion batteries.

James Cable, Chief Financial Officer of Technology Minerals, said:

The acquisition of Recyclus marks an important strategic move for the business with the potential to deliver significant shareholder value to both sets of shareholders. The combination of the two businesses offers a differentiated, IP protected exposure to battery processing, aligning the enlarged business with the energy transition taking place and the circular economy. Our plan is to expand its commercial footprint in the UK and also the EU and US markets where we see the prospect for growth in line with the exponential growth in the electric vehicle markets and other battery-based sectors.

We are excited by the opportunity to acquire Recyclus, taking a significant step in the next stage of Technology Minerals’ development and its circular economy strategy for battery metals. Our confidence in Recyclus is clear from our 48.35% stake in the business and this transaction is a logical progression that aligns perfectly with our twin-track strategy to create a circular economy for battery metals through both the raw material supply, and the reprocessing and re-use of end-of-life batteries.

We believe the industrial scale opportunity for Recyclus is immense as the world transitions from fossil fuels to electrification. Recyclus aims to become a leading player in the recycling of Li-ion and lead-acid batteries to help overcome a critical lack of domestic industrial scale recycling. The business is well placed to ramp up its growth with cutting-edge technology, a first mover advantage, and two plants ready to come online when final approval from the Environment Agency comes through, with eight more planned over the next six years to meet the bourgeoning demand.”

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