The Company Anticipates Commissioning in the 1st Quarter of 2021 the Initial 30,000 Square Feet of its Battery Recycling Plant to be Financed with Conventional Construction Financing
INCLINE VILLAGE, NV / ACCESSWIRE / July 29, 2020 / American Battery Metals Corporation (OTCQB:ABML) (the "Company"), an American-owned advanced extraction and battery recycling technology company with extensive mineral resources in Nevada, today announced that it has entered an escrow to purchase approximately 12 ½ acres of industrial land in Fernley, Nevada, where the Company anticipates locating its first-of-its-kind lithium-ion battery recycling facility. This industrial space is located in a Qualified Opportunity Zone (QOZ) in northern Nevada. The Opportunity Zone Tax Incentive was created to encourage private investment of capital into projects, businesses and property development in northern Nevada.
Northern Nevada is an ideal location for American Battery Metals Corporation to open its initial recycling facility. The proximity to Tesla's Gigafactory 1 (a lithium-ion battery and electric vehicle subassembly factory), developed road and rail infrastructure, low utility and energy costs, access to a highly qualified labor pool, and location within a QOZ were critical factors in choosing the site of our initial lithium-ion battery recycling plant. With the completion of the first phase of this new recycling facility the Company anticipates initially creating at least 50 new jobs that could grow to over 200 new jobs within the next 24 months.
American Battery Metals Corporation is excited to have entered an escrow to purchase a site which is within an industrially zoned community and has ready access to all required utilities. This site has never had any development or construction activity on the location itself. This un-improved property allows American Battery Metals Corporation to implement its vision without any legacy impediments and to move to the construction phase quickly, without the need for large scale site remediation. Furthermore, this strategy allows for the Company to complete the detailed design of the long-term facility immediately, while only initially constructing the portion of the facility needed to implement the first phase of its battery recycling facility. This construction process is similar to how members of the American Battery Metals Corporation team managed large construction projects in the past, including the phasing and staggering of both the construction of the facility and the implementation of value-add processes allowing for a significantly lower upfront capital investment, than purchasing an existing facility or developing the full site at once. The Company anticipates it shall be able to complete all due diligence on the property and complete the purchase by September 15, 2020.
American Battery Metals Corporation Chief Executive Officer Doug Cole, stated, "We continue to make progress in advancing towards commissioning our new battery recycling plant in the first quarter 2021. Nevada is an emerging leader in welcoming new, sustainable technology companies and "The Silver State" has rolled out their welcome mat for American Battery Metals Corporation. We intend to grow and expand our business units in Nevada, and plan to be a strong regional industrial employer over the next several decades."
The Company anticipates financing the building of this initial recycling facility with a conventional 36-month construction financing of approximately $5.5 million including: the purchase cost of the building site, an initial 30,000 square foot industrial building, and initial battery recycling equipment and utility infrastructure. Once the plant is operational, the Company anticipates that this construction financing will be refinanced with long-term project financing with a large-scale lending institution, that may include Small Business Administration (SBA) loan guarantees. Both of these types of lenders have expressed interest in providing financing for this American Battery Metals Corporation project.
American Battery Metals Corporation
American Battery Metals Corporation (www.batterymetals.com) (OTCQB:ABML) is an American-owned, advanced extraction and battery recycling technology company with extensive mineral resources in Nevada. The company is focused on its lithium-ion battery recycling and resource production projects in Nevada, with the goal of becoming a substantial domestic supplier of battery metals to the rapidly growing electric vehicle and battery storage markets.
For more information, please visit:www.batterymetals.com
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, including those with respect to the expected project economics for Western Nevada Basin (Railroad Valley), including estimates of life of mine, average production, cash costs, AISC, initial CAPEX, sustaining CAPEX, pre-tax IRR, pre-tax NPV, net cash flows and recovery rates, the impact of self-mining versus contract mining, the timing to obtain necessary permits, the submission of the project for final investment approval and the timing of initial gold production after investment approval and full financing, metallurgy and processing expectations, the mineral resource estimate, expectations regarding the ability to expand the mineral resource through future drilling, ongoing work to be conducted at the Western Nevada Basin (Railroad Valley), and the potential results of such efforts, the potential commissioning of a Pre-Feasibility study and the effects on timing of the project, are "forward-looking statements." Although the Company's management believes that such forward-looking statements are reasonable, it cannot guarantee that such expectations are, or will be, correct. These forward-looking statements involve a number of risks and uncertainties, which could cause the Company's future results to differ materially from those anticipated. Potential risks and uncertainties include, among others, interpretations or reinterpretations of geologic information, unfavorable exploration results, inability to obtain permits required for future exploration, development or production, general economic conditions and conditions affecting the industries in which the Company operates; the uncertainty of regulatory requirements and approvals; fluctuating mineral and commodity prices, final investment approval and the ability to obtain necessary financing on acceptable terms or at all. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in the Company's filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended September 30, 2019. The Company assumes no obligation to update any of the information contained or referenced in this press release.
SOURCE: American Battery Metals Corporation