Electra Battery Materials Corporation has announced an agreement with holders of its US$51 million in 8.99% senior secured convertible notes. The parties agreed that all accrued interest up to August 15, 2024, will be “paid-in-kind” rather than in cash, adding US$6.5 million to the principal amount of the notes. This move allows Electra to preserve liquidity and allocate capital towards its cobalt refinery project.
David Allen, Electra’s CFO, expressed gratitude for the lenders’ support, noting that the agreement strengthens the company’s ability to focus on its key projects. CEO Trent Mell highlighted the cobalt refinery as Electra’s top priority, emphasizing its potential to become a cornerstone of the North American battery supply chain. Despite recent reports of slowing EV growth for some manufacturers, Mell remains optimistic, citing strong global demand for EVs and the urgency of diversifying the supply chain.
Electra also reported a cash balance of C$4.8 million at the end of the quarter and confirmed the filing of its second-quarter 2024 financial results. The reports are available on SEDAR+ and the company’s website.
The company is progressing with its long-term vision, which includes expanding its refinery and potentially providing recycled battery materials and battery-grade nickel to the North American and global markets. This vision is supported by ongoing projects, such as a planned joint venture with the Three Fires Group for battery recycling and the potential expansion to a second cobalt sulfate facility in Quebec.
Electra’s Canadian refinery, with an estimated replacement value of US$200 million, is central to these efforts. The company requires approximately US$60 million to complete construction, with the project being further de-risked through the receipt of long lead-time equipment and the commissioning of legacy refinery operations for a black mass demonstration plant in 2023.
