A major shareholder of mineral exploration company Cornish Lithium is investing a further £9m in the business.
Technology metals investment firm TechMet has exercised its option to invest at 20 pence per share.
It is the second tranche of an £18m funding package provided by the tech business, which was announced by Cornwall-headquartered Cornish Lithium in November 2021.
The option became exercisable following Cornish Lithium’s delivery of a scoping study for TechMet, the business said.
The Trelavour Scoping Study sets out the design and economics of the Trelavour Project based on the production of battery grade lithium hydroxide.
The Trelavour Project comprises open-pit mining of lithium-enriched granite from a brownfield china clay pit, together with processing via comminution and flotation to a concentrate of lithium-bearing mica. Lithium hydroxide is then produced from the mica concentrate.
The company is now progressing towards a feasibility study for the Trelavour Project. The next drilling programme will start shortly, according to Cornish Lithium.
Jeremy Wrathall, chief executive and founder of Cornish Lithium, said the project would provide an opportunity to create extra skilled jobs in the St Austell region and to develop lithium on a commercial scale to service the UK’s growing battery industry.
“The project team has undertaken a significant amount of work to ensure that this is a fulsome and detailed study, and I am delighted that it has generated such a strong result,” said Mr Wrathall.
“As we progress this work for the feasibility study, we look forward to meeting more local residents through our community engagement programme, answering their questions, addressing any concerns and providing further details about our exciting developments.”
Brian Menell, chief executive and chair of TechMet, said the UK was now “one step closer” to ensuring a domestic source of lithium to supply its future battery and automotive industries.
He added: “TechMet is extremely pleased to be continuing its support for Cornish Lithium as it progresses to the next stage. This represents the first detailed engineering study to demonstrate, with conservative modelling, the economic viability of primary lithium production in the UK.”
In February, Cornish Lithium struck a deal with energy producer IGas Energy Plc to look for sites where geothermal heat can be developed on a commercial basis.
The agreed heads of terms with the British energy company and the parent of geothermal heat developer GT Energy UK. The companies want to work together to evaluate suitable sites where geothermal heat can be produced and create a pilot project.
Like this story? Why not sign up to get the latest business news straight to your inbox
