August 15, 2024
Electra Battery Materials Corp. (TSXV:ELBM, BUY, C$5.50 target, David A. Talbot) announced that it has entered into an agreement with the holder of its US$51M senior secured convertible notes bearing an 8.99% interest. The agreement allows Electra to pay back the accrued interest in kind rather than cash. This interest will be added to the outstanding principal amount. This allows the company to preserve its cash and allocate capital towards the completion of its cobalt refinery in Ontario, for which it requires an additional US$60M in Capex. The company also announced its Q2/24 results and reported a loss of C$0.01/sh. It ended the quarter with C$4.8M in cash. We look forward to more results from the black mass tests and an update on the financing of the remaining Capex for the Co sulphate refinery, which should not be long considering that Electra has secured long-term Co feed for the plant to meet offtake commitments to LG Energy Solution (KOSE:A373220, Not Rated) beginning in 2025 (read notable). Read more
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CanAlaska Uranium Ltd. – TSXV:CVV – 1,2,3,8
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