Our vision is to enable our planet's transition to sustainable energy.
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- Merchant flexibility to process multiple feedstock sources
- Carbon footprint lower than existing international refineries
- Generating foreground IP in sustainability and circular economies
- Proven team which has delivered multi-billion-pound programmes
Currently the European EV and energy storage sectors are wholly reliant on lithium produced by Chinese refineries. These existing producers are environmentally unfriendly, emitting large volumes of CO₂. This dependence will be further amplified by a continued increase in demand for battery chemicals.
We believe the solution is a UK lithium refinery that can serve the European market in an environmentally-friendly way whilst providing a stable and secure supply of lithium hydroxide to European cathode producers, battery manufacturers and OEMs.
This capital raise is an opportunity to invest in Green Lithium’s development phase and support the company as it progresses towards construction of the refinery.
Substantial accomplishments to date
Jan-21 | Initial funds secured. Now at £6.4m total, being £5.2m equity, plus £1.2m in UK Government grants.
Jul-21 | Flowsheet proven. Metso:Outotec laboratory-scale analysis on spodumene samples from 3 prospective suppliers, at 90% yield.
Aug-21 | Engineering study complete. Metso:Outotec engineering study, giving refinery-specific capex, opex and other key data.
Sep-21 | Commenced appointing key consultants, including WSP as owner’s engineer and Worley as balance of plant designer.
Jan-22 | LCA report delivered. Minviro independent life cycle assessment confirming our CO₂ competitiveness verses operating Chinese refineries.
Apr-22 | Trafigura MOU agreed. Covering supply sourcing, offtake sale and potential investment – building on other supply chain MOUs.
Sep-22 | Forecast capex assured. After EY’s successful 2021 diligence, Gardiner & Theobald assured capex estimate to AACE standard.
Oct-22 | Global investment bank Société Générale appointed to run project financing activity.
Nov-22 | HOTs and sale exclusivity agreed with PD Ports over optimal port-side plot in Teesside Freeport economic zone.
Dec-22 | Flowsheet proven at scale. Metso:Outotec continuous pilot analysis on spodumene samples from 3 prospective suppliers, again at 90% yield.
Apr-23 | UK planning permission application submitted, and we are aiming for approval in summer 2023, paving the way to build.
May-23 | UK patent application submitted for process by-product reuse innovation.
Green Lithium operates a B2B model. Revenue will be derived from the sale of lithium hydroxide (LiOH) and potentially the by-product generated from the refining process. Revenue will be contracted ahead of operations starting.
Spodumene concentrate, the feedstock refined to produce LiOH, constitutes c.60% of Green Lithium’s cash cost of production. Importantly, it is typically contracted with reference to LiOH pricing or on a ‘tolling’ basis, creating an in-built contractual hedge. Both commodities are priced in the market in US Dollars, protecting against FX volatility.
Use of proceeds
Capital raise proceeds will contribute towards three critical workstreams requiring completion in advance of construction:
1 | Key engineering design packages preparation and commencement (42% of capital raised)
2 | Teesside site option/lease agreement finalisation and associated costs (22%)
3 | Spodumene procurement activity towards securing a binding supply agreement (36%)
The Company has 3 classes of shares:
- A Ordinary Shares: currently held by Founders. These shares have full voting and dividend rights.
- B Ordinary (Non-Voting) Shares: held by existing investors. These shares have no voting rights but carry dividend rights.
- C Ordinary (Non-Voting) Shares: held by the management team and advisors. These shares have no voting rights but carry dividend rights. The majority of C Ordinary (Non-Voting) Shares are held under option, though a small number are held outright as shares. For those held outright as shares, a small portion of the shareholders have fully paid for their shares (to the sum of £5,656.37) and the rest of the shares issued were funded by the Company (to the sum of £63,272), to be repaid on an exit event.
On an exit or liquidation, the order of priority is set out below.
Seedrs investors will receive A Ordinary Shares. All other investors in the round will receive B Ordinary (Non-Voting) Shares.
On a liquidation, the surplus assets will be distributed as follows:
First, holders of C Ordinary (Non-Voting) Shares will receive their investment amount back (i.e. the amount they paid up for their shares, if anything). For the avoidance of doubt, those holders of C Ordinary (Non-Voting) Shares who have not yet paid the Company for their shares will not receive any investment amount back.
Second, there are three potential distribution outcomes, depending on the amount of surplus assets remaining:
(1) If the remaining assets are insufficient to pay back the total amount invested across all shares in issue, each of the holders of A Ordinary and B Ordinary (Non-Voting) Shares will either receive:
(i) their full investment amount; or
(ii) if there are insufficient funds to do so, a pro rata amount of their initial investment amount;
(2) If the remaining assets are enough so that each A Ordinary and B Ordinary (Non-Voting) Shareholder could receive more per share than the highest subscription price paid per ordinary share in issue, then the remaining assets will be distributed to the A Ordinary and B Ordinary (Non-Voting) Shareholders pro rata to their respective shareholdings;
(3) If the remaining assets are more than the total amount invested across all shares in issue, but less than the highest subscription price per share paid, then the next step depends on whether (on a shareholder by shareholder basis) your investment amount or a pro rata distribution would be higher:
a)If a distribution pro rata to your shareholding would give a higher amount, then those shareholders will first receive their pro rata amount;
b) If a distribution based on your investment amount would be higher, then the pro rata distributions will be made first in accordance with limb (3)(a) and then the remaining shareholders will share in the remaining assets pro rata to their shareholding.
On an Exit, provided the Exit is greater than £60 million, proceeds will be distributed to the holders of A Ordinary Shares, B Ordinary (Non-Voting) Shares and C Ordinary (Non-Voting) Shares pro rata to the number of shares held.
If the Exit is less than £60m, then the proceeds will be distributed in the following order of priority:
First, in paying to each of the A Ordinary Shares, B Ordinary (Non-Voting) Shares and C Ordinary (Non-Voting) Shares their initial investment amount back (provided they have fully paid for their shares), or if there are insufficient funds to do so, a pro rata amount of their initial investment amount.
Second, the remaining proceeds will be distributed to the A Ordinary Shares and B Ordinary (Non-Voting) Shares pro rata to the number of shares held.
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