Business
Aqua Metals Announces Continued Progress on Sierra ARC Buildout and Ongoing Efforts to Finance Remainder of Construction and Commissioning
Company continues to pursue financing for Sierra ARC through commissioning, impacted by further dips in battery minerals pricing;Deploys cash preservation
About this update from Aqua Metals, Inc.
[{"type":"text","content":"Company continues to pursue financing for Sierra ARC through commissioning, impacted by further dips in battery minerals pricing;Deploys cash preservation initiatives, and extends pilot operations to support continued strategic partner development RENO, Nev., Aug. 05, 2024 (GLOBE NEWSWIRE) -- Aqua Metals, Inc. (NASDAQ: AQMS), a pioneer in sustainable lithium battery recycling, today provided an update on its progress and strategic initiatives. Development of its first commercial scale black mass recycling facility, the Sierra ARC, has progressed throughout Q2, including completion of a five megawatt upgrade of utility power, installation of switchgear, steel superstructures, equipment platform with two overhead cranes, as well as equipment deliveries, including tanks, evaporation systems, controls systems, and other key equipment. To complete the Sierra ARC, the Company will need additional financing. In May 2024, Aqua Metals announced the signing of a non-binding term sheet with one of the world’s largest privately held companies for a secured credit facility of up to $33 million. However, the Company was recently advised by the lender that it was suspending further activity with regard to the secured credit facility due to continued high interest rates and recent declines in the market price for lithium-ion minerals, including an over 25% drop in lithium carbonate pricing, since signing the term sheet. These factors raised concerns on the part of the lender regarding the ability of Aqua Metals to meet the lender’s proposed debt service covenants. This follows two months of rigorous due diligence by the lender, which management believes satisfied the lender’s inquiries into the Company’s technology, processes, supply and offtake chain and overall effectiveness of the ability to recycle black mass. Management intends to maintain communications with the lender in the hopes of resuming negotiations in the event of declining interest rates and/or rising mineral prices. Simultaneously, management continues to actively pursue the required funding through various other engagements with funding counterparties, including debt, project finance, joint venture and strategic investment options. The Company also announced that due to the delay in funding, it has completed a reduction in force of personnel hired largely in expectation of secu...