Electra Battery Metals (TSXV: ELBM) has begun early works construction at its past-producing cobalt refinery in Ontario. The program is said to be in advance of full-scale construction that is set to occur at the refinery as part of its planned restart.
The program consists of site-level activities that are preparing the property for future construction. With a budget of $750,000, the program is largely focused on the solvent extraction facility, where “high priority activities” are to occur. The effort includes the relocation and installation of solvent extraction processing equipment that was previously delivered to site, pouring the reinforced concrete bases for the tanks, and completing structural roofing work on the building.
The early works follows similar construction that occurred earlier this year on site, which saw the septic, power, and lighting systems upgraded across the facility, alongside the delivery and placement of a pre-fabricated electrical house.
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“The early works program represents a critical step in transitioning the refinery site back to construction mode. By focusing on key infrastructure, particularly in the SX area, we are ensuring the site is ready for a seamless ramp-up as soon as full funding is in place,” commented Mark Trevisiol, VP of Projects for Electra.
The effort is being partially funded by a US$20 million award from the US Department of Defense under the Defense Production Act. Support was also received from Canada’s Strategic Innovation Fund. Further funding discussions with alternate sources of capital are said to be ongoing in an effort to fully fund the restart of the refinery.
The company has stated it expects that it will be able to finalize the balance of the financing required to complete the restart, however timing on that completion was not provided.
Electra Battery Metals last traded at $1.45 on the TSX Venture.
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