TMC Secures $30M Investment on Path to Commercial Seafloor Nodule Production
15 August 2022 - 10:00PM
TMC the metals company Inc. (Nasdaq: TMC) (“TMC” or the “Company”),
an explorer of the world’s largest estimated undeveloped source of
critical battery metals, today announced a committed PIPE financing
which is expected to result in US$30.4 million of gross proceeds
(approximately $30M net proceeds) through the issuance of
approximately 38.0 million common shares. A majority of the
committed funds are from existing TMC shareholders and insiders,
including Allseas, ERAS Capital (the family office of TMC Director
Andrei Karkar), SAF Group Managing Partner and entrepreneur Brian
Paes-Braga, Front End Chairman & CEO Majid Alghaslan, and TMC
Chairman & CEO Gerard Barron (who purchased common shares at
$0.9645 per share based on the consolidated closing bid price of
the common shares on August 11, 2022) and his family. In total,
approximately 70% of the commitments came from existing TMC
shareholders and insiders. The Company believes that the full
proceeds from this transaction expected this quarter plus existing
cash will be sufficient to fund operations for at least the next
twelve months, past the July 2023 date targeted by the
International Seabed Authority (ISA) as the date for the final
adoption of the exploitation regulations for the industry.
“I appreciate the ongoing support from our existing shareholders
and welcome new shareholders to TMC,” said Gerard Barron, CEO and
Chairman of TMC. “While we continue to see strong tailwinds in
critical mineral demand and prices as well as increased efforts by
countries and companies to shore up supply chains for EV battery
metals, our pre-production company is not immune to inflation
particularly in our offshore costs. We believe this infusion of
capital helps to ensure that we can continue to hit our milestones
leading up to the expected submission of our NORI-D exploitation
application to the ISA.”
Last month TMC announced that its Australian subsidiary, The
Metals Company Australia Pty Ltd., had entered into a research
funding agreement with a consortium of institutions led by
Australia’s Commonwealth Scientific Industrial Research
Organisation (CSIRO) to create a framework for the development of
an ecosystem-based environmental management and monitoring plan
(EMMP). Earlier this year the Company and its strategic partner,
Allseas, announced successful wet-test commissioning of the pilot
nodule collection system — including the nodule riser and collector
vehicle — in the Atlantic Ocean.
As previously announced, TMC will host a conference call today,
Monday, August 15, 2022 at 4:30 pm ET, to provide an update on
second quarter financial results and recent corporate developments,
including the PIPE financing.
EAS Advisors LLC, acting through Odeon Capital Group LLC, member
of FINRA/SIPC/MSRB/NFA, acted as placement agent on the PIPE
financing.
The securities described above have not been registered under
the Securities Act of 1933, as amended. Accordingly, these
securities may not be offered or sold in the United States, except
pursuant to an effective registration statement or an applicable
exemption from the registration requirements of the Securities Act.
TMC has agreed to file a registration statement with the Securities
and Exchange Commission registering the resale of the common shares
issuable in this private placement.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such
jurisdiction.
About The Metals Company
The Metals Company is an explorer of lower-impact battery metals
from seafloor polymetallic nodules, on a dual mission: (1) supply
metals for the clean energy transition with the least possible
negative environmental and social impact and (2) accelerate the
transition to a circular metal economy. The company through its
subsidiaries holds exploration and commercial rights to three
polymetallic nodule contract areas in the Clarion Clipperton Zone
of the Pacific Ocean regulated by the International Seabed
Authority and sponsored by the governments of Nauru, Kiribati and
the Kingdom of Tonga. More information about The Metals Company is
available at www.metals.co.
More Info Media | media@metals.coInvestors |
investors@metals.co
Forward Looking Statements
Certain statements made in this press release are not historical
facts but are forward-looking statements for purposes of the safe
harbor provisions under The Private Securities Litigation Reform
Act of 1995. Forward-looking statements generally are accompanied
by words such as “believe,” “may,” “will,” “estimate,” “continue,”
“anticipate,” “intend,” “expect,” “should,” “would,” “plan,”
“predict,” “potential,” “seem,” “seek,” “future,” “outlook” and
similar expressions that predict or indicate future events or
trends or that are not statements of historical matters, including
related to the expected proceeds from the PIPE financing, how long
TMC’s cash and proceeds from the PIPE financing will fund
operations, the timing of ISA actions and TMC’s submission of an
exploitation application. These forward-looking statements involve
significant risks and uncertainties that could cause the actual
results to differ materially from those discussed in the
forward-looking statements. Most of these factors are outside TMC’s
control and are difficult to predict. Factors that may cause such
differences include, but are not limited to: TMC’s successful
completion of the PIPE financing and receipt of all expected
proceeds thereform; TMC’s ability to obtain exploitation contracts
for its areas in the CCZ; regulatory uncertainties and the impact
of government regulation and political instability on TMC’s
resource activities; changes to any of the laws, rules, regulations
or policies to which TMC is subject; the impact of extensive and
costly environmental requirements on TMC’s operations;
environmental liabilities; the impact of polymetallic nodule
collection on biodiversity in the CCZ and recovery rates of
impacted ecosystems; TMC’s ability to develop minerals in
sufficient grade or quantities to justify commercial operations;
the lack of development of seafloor polymetallic nodule deposit;
TMC’s ability to successfully enter into binding agreements with
each of Allseas and Epsilon Carbon; uncertainty in the estimates
for mineral resource calculations from certain contract areas and
for the grade and quality of polymetallic nodule deposits; risks
associated with natural hazards; uncertainty with respect to the
specialized treatment and processing of polymetallic nodules that
TMC may recover; risks associated with collective, development and
processing operations, including with respect to the proposed plant
in India and Allseas’ expected development efforts; fluctuations in
transportation costs; fluctuations in metals prices; testing and
manufacturing of equipment; risks associated with TMC’s limited
operating history; the impact of the COVID-19 pandemic; risks
associated with TMC’s intellectual property; and other risks and
uncertainties, including those under Item 1A “Risk Factors” in
TMC’s Annual Report on Form 10-K for the year ended December 31,
2021, filed by TMC with the Securities and Exchange Commission
(“SEC”) on March 25, 2022, and in TMC’s other future filings with
the SEC. TMC cautions that the foregoing list of factors is not
exclusive, including TMC’s Quarterly Report on Form 10-Q for the
quarter ended June 30, 2022 when filed with the SEC. TMC cautions
readers not to place undue reliance upon any forward-looking
statements, which speak only as of the date made. TMC does not
undertake or accept any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements
to reflect any change in its expectations or any change in events,
conditions, or circumstances on which any such statement is based
except as required by law.
TMC the Metals (NASDAQ:TMC)
Historical Stock Chart
From Apr 2024 to May 2024
TMC the Metals (NASDAQ:TMC)
Historical Stock Chart
From May 2023 to May 2024