Rock Tech selects Red Rock as the location for Ontario's First Lithium Refinery and secures CAD 5.5mn project investment from the BMI Group Following an extensive location selection process, Rock Tech has selected the former Norampac Paper Mill site in
Rock Tech selects Red Rock as the location for Ontario's First Lithium
Refinery and secures CAD 5.5mn project investment from the BMI Group
Following an extensive location selection process, Rock Tech has selected the former Norampac Paper Mill site in
Red Rock
as the location to develop
Ontario's
first Lithium Refinery ("Converter").
Rock Tech and the BMI Group signed a binding Cooperation Agreement outlining a long-term lease for the Converter location and a
CAD 5.5mn
investment
by the BMI Group into the Project.
With Rock Tech's unparalleled expertise gained through the successful development of
Europe's
first Lithium Converter in
Germany
,
Red Rock
is positioned
to become
Canada's
premier lithium refining destination.
TORONTO
,
March 4, 2024
/CNW/ -
Rock Tech Lithium Inc.
(TSX-V: RCK) (OTCQX: RCKTF) (FWB: RJIB) (WKN: A1XF0V)
(the "Company" or "Rock Tech")
and the BMI Group ("BMI") are pleased to announce the signing of a Cooperation Agreement ("Agreement"). The Agreement bindingly confirms the parties'
plans to enter into a long-term lease contract for the location of
Ontario's
first Lithium Converter. The
Red Rock
site was selected by Rock Tech following the
successful completion of a comprehensive site-assessment process. BMI further commits to invest
CAD 5.5mn
into the Project as part of the Agreement.
3D-Model of Rock Tech's Lithium Refinery in Red Rock (CNW Group/Rock Tech Lithium Inc.)
Rock Tech has decided to develop
Ontario's
first Lithium Converter on the former Norampac Paper Mill site in
Red Rock
. The township of
Red Rock
is located
approximately 110 km northeast of
Thunder Bay
, along the Trans-Canada Highway 17, on the north shore of
Lake Superior
. Rock Tech's 100% owned Georgia
Lake mining project is located approximately 60 km north of
Red Rock
.
In early 2023, Rock Tech engaged in an extensive site selection process. Several green and brown-field sites across
Ontario
and the
Northern United States
were
evaluated. Rock Tech's comprehensive expertise in developing
Europe's
first Lithium Converter in
Germany
was instrumental in running an efficient and successful
selection process in
Canada
. Since 2021, the Company has invested over 350,000 engineering hours and
CAD 60mn
into developing the Guben Lithium Converter
in
Germany
.
Among others, the location in
Red Rock
was selected due to:
I.
The availability of major supporting infrastructure including the proximity to BMI's emerging multimodal logistics hub and an energy grid providing abundant clean electricity.
II.
Strong support for the Project by the local community and Indigenous partners.
III.
Its proximity to the Georgia Lake project.
With BMI developing multimodal road and rail logistics capabilities in the port of
Red Rock
, the location is strategically positioned to become the prime lithium
refining destination in
Northern Ontario
. Equipped with the capability to process lithium from third-party mining projects, the Red Rock Converter will further unlock
Northern Ontario's
nascent lithium mining sector.
"This is a fundamental milestone for our North American Lithium refinery plans," explains
Kerstin Wedemann
, Rock Tech's Chief Legal & Operations Officer,
"Lithium Converters are large value-added production facilities. Substantial infrastructure and several supporting factors are required to enable such projects. Our
site selection process evaluated more than 150 different criteria and determined that
Red Rock
is the best location for this important Project."
The binding Cooperation Agreement signed between Rock Tech and BMI is comprised of two aspects:
I.
Rock Tech and BMI will enter into a long-term lease agreement for an area of approximately 50 acres (20 hectares) on the former Norampac Paper Mill site in Red Rock, allowing Rock Tech to develop, build and operate Ontario's first Lithium Converter.
II.
BMI will invest CAD 5.5 mn into Rock Tech's Red Rock Lithium Converter on the asset-level of the Project. The investment by BMI will include an equity component, where BMI will acquire an equity stake in the Project, as well as a long-term loan.
The exact terms and conditions of the lease and investment agreements will be negotiated in the coming weeks and amongst others are subject to the outcome of
usual due diligence.
"We believe in strong partnerships and the community benefits our projects can generate," Rock Tech's CEO
Dirk Harbecke
adds, "For over a decade now, we
have been committed to developing relationships with our Indigenous partners in the area. With our decision to build our first Ontario Lithium Converter in
Red
Rock
we are proud to honour their request to
refine where we mine
. The
Red Rock
community is eager to see a large industrial project return. BMI shares this
vision of realizing sustainable economic development in
Northern Ontario
, demonstrated by their asset-level investment into the Red Rock Lithium Converter
Project."
"From developing the northernmost port on the Great Lakes in partnership with the Red Rock Indian Band to working with the town of
Red Rock
, Iron and Oak
Railroad Services, and Hydro One, we've been working to make
Red Rock
industry-ready," commented
Paul Veldman
, CEO of the BMI Group, "Today, that work
has secured a pivotal partnership with Rock Tech and a new future for the
Red Rock
community. Together, we're working to fortify
Ontario's
Critical Mineral
Corridor from the North to Niagara to establish a robust, made-in-
Ontario
lithium supply chain crucial for meeting the province's burgeoning automotive and battery
manufacturing potential. At PDAC 2024, we'll be meeting with industry partners to discuss the Port of
Red Rock
, Rock Tech's Lithium Converter capabilities, and
the Critical Mineral Corridor strategic supply chain."
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 doorstep 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
. The second Lithium converter will be built in
Red Rock, Ontario, Canada
.
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.
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's goal: to create a closed-loop lithium production system.
ABOUT THE BMI GROUP
BMI Group is a real estate development and revitalization company specializing in the adaptive reuse and repurposing of end-of-use industrial and commercial
properties and their transition from linear to circular economies. The former
Red Rock
mill site is being developed in partnership with the Red Rock Indian Band
(RRIB), an Ojibwe First Nation in
Northwestern Ontario
, as a catalyst for the town of
Red Rock
and the greater
Nipigon
region. Aligned with the core themes of
the Township's Community Development Strategy, the Mill Redevelopment Concept Plan (2022) outlines BMI's aspirations for the future of the former mill site and
its conceptual redevelopment, inclusive of its evolution to integrate future opportunities, investment, and business interest.
https://www.thebmigroup.ca/
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, this press release contains forward-looking information pertaining to the outcome of the site selection and
assessment together with BMI and its partners, regulatory decisions and outcomes; anticipated due diligence results; infrastructure and construction and its costs,
schedules and completion dates; access to capital markets and other sources of financing; the supply and demand for, deliveries of, and the level and volatility of
prices of, intermediate and final Lithium products; future exchange and interest rates; general business and economic conditions; the costs and results of
development, exploration and operating activities; Rock Tech's ability to start construction on the selected site, to procure supplies and other equipment necessary
for its business; and the accuracy and reliability of technical data, forecasts, estimates and studies; Rock Tech's opinions, beliefs and expectations regarding the
outcome of the Cooperation Agreement and the subsequent due diligence, the Company's own business strategy, development and exploration opportunities and
projects, and plans and objectives of management for the Company's operations and properties; and BMI's ability to provide financing, procure supplies and other
equipment necessary for their business; the pending development and infrastructure of the
Red Rock
port area, their accuracy and reliability of technical data,
forecasts, estimates and studies.
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. 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, or known and unknown risks and uncertainties that may the Company's ability to access
additional funding required to invest in available opportunities and projects (including the Company's converter projects and the Georgia Lake project).
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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For further information:
Rock Tech Lithium Inc., Konstantin Burger, Head of Investor Relations - [email protected]. +1 (778) 358-5200; 2400-333
Bay Street, Toronto ON M5H 2T6, Canada; BMI: Peter Whitby, phone: +1 (519) 500-3869; or email: [email protected], The BMI Group; 14719 Bayham Dr,
Tillsonburg ON N4G 4G8, Canada
CO: Rock Tech Lithium Inc.
CNW 09:00e 04-MAR-24