Long Term Lease Agreed for TVL's Lithium Facility

RNS Number : 2389K

Alkemy Capital Investments PLC

20 December 2022

 

20 December 2022

Alkemy Capital Investments Plc

Long Term Lease Agreed for TVL's lithium processing facility at Wilton International

Alkemy Capital Investments plc ("Alkemy") (ALK:LSE) (JV2:FRA) is pleased to announce that its wholly owned subsidiary Tees Valley Lithium Ltd (" TVL ") has agreed the terms of a Long Term Lease in respect of its lithium hydroxide processing facility in Teesside.

HIGHLIGHTS

· TVL and Sembcorp Energy UK agree the terms of a 30 year Lease for TVL's lithium processing facility at Wilton International, Teesside.

· Sembcorp Energy UK's site at Wilton International, within the Teesside Freeport, sits amongst a hub of decarbonisation innovation, and is ready for investing energy-intensive industrial businesses with it's 'plug and play' approach to available development land.

· Agreeing terms for a long term Lease follows the granting of full planning permission in November and represents another significant milestone for TVL.

TVL announces that further to its RNS on 8 November 2022, it has now formally agreed the terms of a 30 year Lease with Sembcorp Energy UK in respect of its site at Wilton International in Teesside.

Under the terms of an Agreement for Lease, which was signed today, TVL has an option for up to a year to enter into the agreed long term Lease, during which time it will conclude formalities with respect to financing and utilities and services, although it is anticipated that these should be completed well in advance of the expiry of the option period.

A key driver for TVL's site selection at Wilton International, which sits within the Teesside Freeport amongst a hub of decarbonisation innovation, is Sembcorp Energy UK's 'plug & play' infrastructure, and readily-accessible utilities including water, gas, steam and electricity.

The refinery will be capable of producing both lithium hydroxide and lithium carbonate sourced from imported high grade feedstock from South America and lithium producers located in Australia and elsewhere. The refinery is expected to produce enough lithium hydroxide to supply 100% of the forecasted automotive demand in the UK by 2030, with a further 35% of its total production available for export to other countries in Europe and elsewhere.

Utilising state-of-the-art electrochemical processing, TVL's zero waste lithium refinery will be the largest in Europe - producing 96,000tpa of low-carbon battery-grade lithium hydroxide once in full production - equivalent to 15% of projected European demand.

Andy Koss,CEO UK & Middle East, Sembcorp Industries, commented:

"It's great to see Tees Valley Lithium committed to Teesside and further supporting the net zero supply chain. At Wilton International, Sembcorp Energy UK is ready to welcome new businesses and jobs that will help enable the transition to a low-carbon economy."

Sam Quinn, Director of Alkemy commented: 

"We are delighted to have agreed the terms of a Long Term Lease at the world-class Wilton International site in Teesside.

This represents another significant milestone for Tees Valley Lithium as we seek to become Europe's first and largest independent and sustainable lithium hydroxide processing hub.

We would like to thank the highly supportive team at Sembcorp Energy UK and look forward to working together with them as we develop and construct our refinery."

Further information

For further information, please visit Alkemy's website: www.alkemycapital.co.uk or TVL's website www.teesvalleylithium.co.uk .

-Ends-

Alkemy Capital Investments Plc Sam Quinn	Tel: [phone] [e-mail]
Buchanan Oonagh Reidy/Abigail Gilchrist	Tel: [phone] [e-mail]
VSA Capital Limited Andrew Monk (Corporate Broking) Andrew Raca (Corporate Finance)	Tel: [phone]
Shard Capital Partners LLP Damon Heath Isabella Pierre	Tel: [phone] [e-mail] Tel: [phone] [e-mail]

NOTES TO EDITORS

Alkemy is seeking to establish the world's leading independent and sustainable lithium hydroxide production by developing state-of-the-art Lithium Sulphate and Lithium Hydroxide facilities in Australia and the UK.

Alkemy, through its wholly-owned subsidiary Tees Valley Lithium, has secured a 9.6 ha brownfields site with full planning permission at the Wilton International Chemicals Park located in Teesside, a major UK Freeport to build Europe's first and largest Lithium Hydroxide processing facility.

Alkemy has completed a Class 4 Feasibility Study for its proposed lithium hydroxide facility which will process feedstock imported from various sources to produce 96,000 tonnes of premium, low-carbon lithium hydroxide annually, representing around 15% of Europe's projected demand.

The company has identified a site at Port Hedland, Western Australia to build a world-class sustainable Lithium Sulphate refinery that will provide reliable feedstock for Tees Valley Lithium.

Forward Looking Statements

This news release contains forward‐looking information. The statements are based on reasonable assumptions and expectations of management and Alkemy provides no assurance that actual events will meet management's expectations. In certain cases, forward‐looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Although Alkemy believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those projected. Mining exploration and development is an inherently risky business. In addition, factors that could cause actual events to differ materially from the forward-looking information stated herein include any factors which affect decisions to pursue mineral exploration on the relevant property and the ultimate exercise of option rights, which may include changes in market conditions, changes in metal prices, general economic and political conditions, environmental risks, and community and non-governmental actions. Such factors will also affect whether Alkemy will ultimately receive the benefits anticipated pursuant to relevant agreements. This list is not exhaustive of the factors that may affect any of the forward‐looking statements. These and other factors should be considered carefully and readers should not place undue reliance on forward-looking information.

 

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