- Basic Engineering for the Guben Converter has reached
completion, EPCM selection in final phase, final permit to
construct and operate expected in Q4 2023.
- Assay results from winter drilling at Georgia Lake
successfully completed, summer exploration and mapping program
ongoing.
- Planning for second converter to be located in the US or
Ontario, Canada has
started.
VANCOUVER, BC, July 4, 2023
/CNW/ - Rock Tech Lithium Inc. (TSX-V: RCK) (OTCQX: RCKTF)
(FWB: RJIB) (WKN: A1XF0V) (the "Company" or "Rock Tech") is
pleased to provide a project update on its mining and converter
projects. Rock Tech has made substantial progress in the
engineering, development and financing of its two assets, the
lithium hydroxide converter in Germany and the Georgia Lake mining project in
Canada. The Company has also
started the planning and site selection process for its second
converter.
THE GUBEN CONVERTER – THE LEADING
EUROPEAN LITHIUM CONVERSION PROJECT
Rock Tech broke ground on its lithium hydroxide monohydrate
(LHM) converter in March 2023. Site
access has been secured and basic engineering for the plant has
been completed through a series of three thorough engineering
studies including the recent Front-End Loading Stage 3 study
(FEL3)1. Test piling and loading tests have been
completed and geostatic modeling results are expected in the
next weeks. Final approval to build and operate the converter is
expected in Q4 2023 and the Company plans to start construction
once the final permit is granted. Construction is projected to be
completed by the beginning of 2025. First production output is
planned for Q3 2025. After this initial ramp-up phase Rock Tech
will begin to produce battery-grade lithium hydroxide starting in
Q1 2026.
Utility contracts and procurement of major equipment parts
including the pyrometallurgical package, hydrometallurgical
package and crystallizer have been prepared. Electrical,
Distributed Control System (DCS), Instrumentation and Control
(I&C) for the production plant are defined including operating
strategy with regards to digitalization, automation and robotics.
Supply chain logistics for the feedstock, residues and chemicals
have also been defined. The selection of an EPCM contractor is in
its final stage and selection will be finalized in the coming
weeks. The city of Guben has finished a railway connection
tender for the site. The supply of additional feedstock for
the converter is in final stages as well.
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1 See the
Company's press release titled "Rock Tech Lithium Inc. completes
Final Engineering Study before Construction of its Lithium
Converter and Mandates Deutsche Bank as Placement Agent" May 14,
2023 for details
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PERMITTING
German permitting allows for one single permit to build,
commission and operate the plant. This permit requires extensive
knowledge of emissions, noise levels, adherence to government
regulations and fire protection among other related aspects. The
first part of the permit, obtained in March
2023, relates to all civil, infrastructural, and underground
works. The application for the second part of the permit that
relates to all process infrastructure was submitted in 2022 and is
expected to be granted by Q4 2023.
FINANCING
Rock Tech is making rapid progress with subsidies, equity and
debt financing. The Company expects to receive approximately
450m EUR in debt from prominent
European Banks, the due diligence for the credit approval is
already underway. Deutsche Bank has been mandated as placement
agent for the converter to secure 350m
EUR in equity and subsidies from investors and the
government. Equity investments in Germany will be on the asset level to ensure
minimal dilution of the holding company publicly listed in
Canada. Both Rock Tech assets,
Georgia Lake and Guben, are attracting significant interest
from global investors looking to acquire a direct stake.
Additionally, negotiations are ongoing with major companies in the
lithium, battery production and automotive sectors to form
strategic partnerships. Negotiations are expected to be finalized
in the upcoming weeks.
SUSTAINABILITY
Rock Tech's goal is to be the world's first closed loop lithium
company. Starting with responsible mining in accordance with the
strict Canadian and international regulations to the operation of
its conversion plant designed to refine feedstock and recycle
lithium products. Currently, there are no other projects planned in
Europe with the equipment and
assets required to recycle lithium, making Rock Tech uniquely
positioned in this area. A certified external
assessment2 forecasts the conversion
plant's CO2 emission levels for the production of one tonne of
lithium hydroxide to be 30% lower than the industry average. With
current plant design and under use of only renewable energy sources
carbon emissions could see a 60% reduction by 2026. Furthermore,
the Company plans to utilize 95% of by-products and production
residues. Together with the German Lithium Institute ITEL, Rock
Tech is working on solutions for this with partners from the
construction materials and waste management industries. Upon the
commencement of battery-grade production, Circulor, a leading
provider of sustainable supply chain traceability, will provide a
full-scale solution for supply chain transparency. Circulor's
blockchain powered tracking will enable Rock Tech to comply with
the European Battery Regulation's requirements and battery passport
initiatives.
CONVERTER II
The Inflation Reduction Act in the US, a subsidy program for
green industries, has significantly increased the attractiveness of
the North American EV and battery market. With engineering for the
Guben converter nearing completion, the Company is now starting
planning for its next converter project. Rock Tech is therefore
pleased to inform that it is in the final process of identifying
suitable locations in the northern United
States and Ontario, Canada
for its next converter site. More details will be announced once
the final site selection has been completed.
GEORGIA LAKE PROJECT – THE LITHIUM MINING
PIONEER IN ONTARIO
The raw materials mined at Georgia Lake are a key ingredient for
Rock Tech's integrated strategy. The Georgia Lake project contains
over 40% of the published Mineral Resources in the Thunder Bay District and the newly added
Boston Lake mining claims offer another opportunity to further
expand. In the last few months, the Georgia Lake project has
advanced significantly. The 2023 winter drilling program has been
finalized with positive results, and an extensive summer
exploration program is focusing on prospecting, mapping and
trenching3 (see press release of Rock Tech dated
04 July 2023). The Company intends to
extend the life of mine and the Mineral Resource considerably from
2023 to 2024 through a series of phased exploration programs and
move the project into construction next year. The Company maintains
good relations and information exchange with all relevant
stakeholders. Additionally, CIBC is serving as Rock Tech's
strategic advisor that manages a structured process intended to
identify partners for the development and further exploration of
the mine project.
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2 See press
release of the Company on 24 May 2023 titled "Rock Tech's Guben
Converter Lithium Production Carbon Footprint is 30 Percent Lower
than the International Energy Agency's Reported Average"
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On behalf of the Board of Directors,
Dirk
Harbecke
Chairman & CEO
ABOUT ROCK TECH
Rock Tech is a cleantech company with operations in Canada and Germany on a mission to produce lithium
hydroxide for electric vehicle batteries. The Company plans to
build lithium converters at the door-step of its customers, to
guarantee supply-chain transparency and just-in-time delivery,
beginning with the Company's proposed lithium hydroxide merchant
converter and refinery facility in Guben, Germany. To close the most pressing gap in the
clean mobility story, Rock Tech has gathered one of the strongest
teams in the industry. The Company has adopted strict
environmental, social and governance standards and is developing a
proprietary refining process aimed at further increasing efficiency
and sustainability. Rock Tech plans to source raw material from its
wholly-owned Georgia Lake spodumene project located in the Thunder
Bay Mining District of Ontario,
Canada, as well as procuring it from other responsibly
producing mines. In the years to come, the Company expects to also
source raw material from discarded batteries. Rock Tech's goal: to
create a closed-loop lithium production system.
www.rocktechlithium.com
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
CAUTIONARY NOTE CONCERNING
FORWARD-LOOKING INFORMATION
Certain statements contained in this news release constitute
"forward-looking information" under applicable securities laws and
are referred to herein as "forward-looking statements". All
statements, other than statements of historical fact, which address
events, results, outcomes or developments that the Company expects
to occur are forward-looking statements. When used in this news
release, words such as "expects", "anticipates", "plans",
"predicts", "believes", "estimates", "intends", "targets",
"projects", "forecasts", "may", "will", "should", "would", "could"
or negative versions thereof and other similar expressions are
intended to identify forward-looking statements. In particular,
forward-looking statements contained in this news release include:
estimations or predictions about the Mineral Resource or Reserve
therein; the further potential of the Boston Lake Claims; and the
Company's future plans and expectations as described in the section
"About Rock Tech".
Forward-looking statements by their nature are based on
assumptions and involve known and unknown risks, uncertainties and
other factors which may cause the actual results to differ
materially from the forward-looking statements. The material
factors or assumptions used to develop the forward-looking
statements include: the Exploration Expenditures, the existence of
certain spodumene pegmatites, the possible type of mining and
concentration of lithium; the distance required for transportation
of concentrate; the Company's ability to procure equipment
necessary for its business; that all required regulatory approvals
and permits can be obtained on the necessary terms in a timely
manner; and that financing will be available to the Company on
commercial terms. There may also be other factors that cause actual
results to differ materially from the forward-looking statements,
including the risks, uncertainties and other factors discussed in
the Company's most recent management's discussion and analysis and
annual information form filed with the applicable securities
regulators.
No assurances can be given that any of the events anticipated by
the forward-looking statements will transpire or occur, and the
Company cautions the reader not to place undue reliance upon any
such forward-looking statements. The Company does not intend, nor
does it assume any obligation to update or revise any of the
forward-looking statements, whether as a result of new information,
changes in assumptions, future events or otherwise, except to the
extent required by applicable law.
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3 See the
Company's press release "Lithium Assay Results Returned from
Step-out Winter 2023 Drill Program as Rock Tech Initiates Summer
Field Exploration at Georgia Lake" dated 04 July 2023
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SOURCE Rock Tech Lithium Inc.