Electra issues major tender for North America's first cobalt refinery

TORONTO - Electra Battery Materials Corporation (NASDAQ:ELBM; TSX-V:ELBM) announced Monday the issuance of a structural, mechanical, piping, electrical and instrumentation (SMPEI) tender package for its cobalt sulfate refinery under construction in Temiskaming Shores, Ontario. The small-cap company, with a market capitalization of $97.33 million, has seen its stock price decline 43.92% year-to-date.

The tender covers installation of processing systems at what the company describes as North America's first cobalt sulfate refinery. The scope includes structural, mechanical, piping, electrical, instrumentation and utility connections needed to integrate the facility's key systems.

"Tendering the SMPEI package paves the way for full construction activities," said Paolo Toscano, Vice President, Projects & Engineering, in the press release.

The company recently began its Construction Reactivation Program at the site, with project financing secured and most long-lead equipment procurement completed. According to the announcement, core infrastructure is already in place with major components on site. InvestingPro data shows Electra faces financial challenges with a current ratio of just 0.05, indicating short-term obligations exceed liquid assets.

The refinery's commissioning is targeted for 2027, as stated in the company release. Electra's project is part of its strategy to develop North American critical minerals processing for lithium-ion batteries. Investors should note that InvestingPro analysis indicates the company is currently overvalued, with analysts not anticipating profitability this year.

Beyond the refinery, Electra holds land in Idaho's Cobalt Belt, including its Iron Creek project. The company is also exploring black mass recycling opportunities to recover materials from end-of-life batteries.

The announcement marks Electra's transition from early works to full construction mobilization at the Ontario site, based on information provided in the company's press release.

In other recent news, Electra Battery Materials Corporation has resumed construction on its cobalt sulfate refinery after securing approximately $82 million in project financing. This facility, set to be North America's first of its kind, aims to produce 6,500 tonnes of battery-grade cobalt annually by 2027. Additionally, the company has completed a $30 million private placement financing with significant participation from existing shareholders and new institutional investors. Electra has also appointed Paolo Toscano as Vice President of Projects and Engineering to oversee the construction and commissioning of the refinery. In a separate development, H.C. Wainwright reaffirmed its Buy rating on Electra Battery Materials, maintaining a $2.20 price target following the company's potential government funding announcement. Electra signed a term sheet for C$17.5 million in proposed funding from Invest Ontario to support the refinery's construction. Moreover, Jody Thomas, former National Security and Intelligence Advisor to the Prime Minister of Canada, has been nominated to join Electra's Board of Directors, bringing extensive experience in national defense and intelligence.

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