TIDMALK

RNS Number : 2531E

Alkemy Capital Investments PLC

27 October 2022

27 October 2022

Alkemy Capital Investments plc

Interim Results for the Six Months Ended 31 July 2022

Alkemy Capital Investments plc ("ALK" or the "Company") (ALK:LSE) (JV2:FRA) is pleased to present its unaudited financial statements for the 6 months ended 31 July 2022 as extracted from the Company's 2022 Half Year Report which is now available on the Company website at www.alkemycapital.co.uk.

The interim financial statements are set out below and should be read in conjunction with the 2022 Half Year Report which contains the notes to the financial statements.

2022 Financial and Operational Highlights include:

   --    Tees Valley Lithium officially launched 
   --    Class 4 feasibility study delivered for our lithium hydroxide processing facility in Teesside 
   --    Met test work confirms ultra-pure battery-grade lithium hydroxide 
   --    Partnerships established with Traxys and Weardale Lithium for feedstock 
   --    Australia strategy launched 
   --    Key consultants appointed and management positions filled 
   --    Oversubscribed private placement completed 
   --    Partnership established with bp for green hydrogen use 

Further information

For further information, please visit Alkemy's website: www.alkemycapital.co.uk or TVL's website www.teesvalleylithium.co.uk .

-Ends-

 
 Alkemy Capital Investments Plc     Tel: 0207 317 0636 
  Sam Quinn                          info@alkemycapital.co.uk 
 Buchanan                           Tel: +44 (0)20 7466 5000 
  Bobby Morse/Abigail Gilchrist      TVL@buchanan.uk.com 
 VSA Capital Limited                Tel: 0203 005 5000 
  Andrew Monk (Corporate Broking) 
  Andrew Raca (Corporate Finance) 
 Shard Capital Partners LLP         Tel: 0207 186 9952 
  Damon Heath                        damon.heath@shardcapital.com 
                                     Tel: 0207 186 9927 
  Isabella Pierre                    isabella.pierre@shardcapital.com 
 

Chairman's Statement

I have great pleasure in presenting our interim results for the period ended 31 July 2022.

Highlights:

   --    Tees Valley Lithium officially launched 
   --    Class 4 feasibility study delivered for our lithium hydroxide processing facility in Teesside 
   --    Met test work confirms ultra-pure battery-grade lithium hydroxide 
   --    Partnerships established with Traxys and Weardale Lithium for feedstock 
   --    Australia strategy launched 
   --    Key consultants appointed and management positions filled 
   --    Oversubscribed private placement completed 
   --    Partnership established with bp for green hydrogen use 

Tees Valley Lithium

In February 2022 we announced the formation of a subsidiary called Tees Valley Lithium Limited ("TVL").

TVL will seek to develop the UK's first lithium hydroxide monohydrate ("LHM") facility at the Wilton International Chemicals Park located in the Teesside Freeport, UK.

This transaction and change of strategy constituted a reverse takeover transaction under the listing rules of the London Stock Exchange and resulted in Alkemy becoming an operating company.

Although we are still in the early stages, our aim is to build the most sustainable and significant producer of lithium hydroxide globally, utilising the advantages of the UK's chemical processing skills, infrastructure, green energy and legislation.

Class 4 Feasibility Study

In April 2022 we announced the completion of a Class 4 Feasibility Study for our LHM facility. The LHM facility will process feedstock imported from various sources to produce 96,000 tonnes of a premium, low-carbon lithium hydroxide annually, representing around 15% of Europe's projected demand.

The proposed LHM facility is located at the "plug and play" Wilton International Chemicals Park in the Teesside Freeport, with connections to 100% certified renewable energy.

The study was prepared by Wave International, a leading engineering consultancy firm with significant experience in developing lithium hydroxide projects worldwide.

Study highlights:

-- 96,000 tonnes annual production of battery grade lithium hydroxide representing approximately 15% of projected UK and EU demand;

-- The facility has been designed to process a range of imported low-carbon, high value feed sources including lithium sulphate and lithium carbonate;

-- Pre-tax net present value (NPV) of GBP2.8 (US$3.9) billion based on long-term lithium hydroxide price of US$25,000 per tonne;

   --    Initial capital cost of GBP216 (US$300) million; 
   --    Gross revenues of GBP49.2 (US$68.4) billion; 
   --    Internal rate of return (IRR) of 35.6%; 
   --    Significant potential to capture by-product value streams. 

The project is the first of its kind in the UK, the biggest in Europe and will when completed be a key supplier to UK and European giga factories, electrical vehicle and battery storage industries.

Metallurgical test work

In May 2022 we announced the initial results of our ongoing metallurgical test-work programme. The test-work was performed by a leading technology provider JordProxa in Australia and independently verified by an internationally recognised cathode active material manufacturer.

The results demonstrated an ultra-pure battery grade lithium hydroxide from a low-quality industrial grade (95%) lithium sulphate.

The product specification rivals the prevalent Chinese standard specification GB/T 26008-2020 D1.

JordProxa further confirmed the ability to upscale to commercial production.

Feedstock and partnerships

During the period we continued to advance our discussions with counterparties for both feedstock and offtake.

In July 2022 we signed a partnership agreement with Traxys, a leading global physical trader and merchant in metals and natural resources, with annual turnover in excess of USD 8 billion. Under the terms of the agreement, Traxys will source and supply lithium feedstock for our processing facilities.

In August 2022 we announced the signing of an MoU with Weardale Lithium as a potential feedstock supplier from its lithium project in the North-East of England.

We are currently in advanced discussions with several other potential suppliers of spodumene concentrate and crude lithium carbonate and look forward to updating the market on this in due course.

Australia strategy

In August 2022 we announced plans to build a lithium sulphate monohydrate ("LSM") plant at Port Hedland, Australia's largest export port located in the Pilbara region of Western Australia, to feed TVL's LHM facility in Teesside.

Port Hedland is an ideal location as it is in close proximity to a large number of spodumene producers in Western Australia. Port Hedland also benefits from excellent existing infrastructure (road, rail, water, electricity and gas) as well as talent. It further benefits from access to renewable energy and energy storage, allowing the delivery of a LSM plant with a low carbon footprint.

Train 1 of the Port Hedland LSM plant will process spodumene from Australian lithium miners to produce 40,000 tpa of primary LSM, with trains 2-4 adding a further 120,000 tpa primary LSM production in future expansions.

The Port Hedland LSM plant, together with TVL's LHM processing facility at Teesside, will deliver a low carbon, de-risked lithium supply chain between Western Australian spodumene producers and the burgeoning European lithium battery cell market.

Key consultants and management team

In March 2022 we strengthened our management team with the addition of John Walker as the chief executive officer of TVL. John has more than 30 years of leadership experience in the mining and advanced materials processing industries.

In October 2022 we further bolstered the team with the appointment of Tony Veitch to lead our LSM project development. Tony is a very capable and experienced project builder and we are pleased to retain such talent on our team.

We have also appointed several industry leading consultants to help us deliver the projects, including:

-- Wave International - a leading consulting firm in the battery and tech metals sector, with extensive upstream and downstream lithium processing experience. Wave delivered the Class 4 study and have had a significant involvement in the development of lithium hydroxide refineries in Australia. Wave will manage all work programmes including the work of our other experts and consultants, in order to develop a best-in-class LSM and LHM refining process.

-- ANZAPLAN - a leading engineering consultant who will assist TVL in the development of the electrochemical route process.

   --    Nagrom laboratories - a leading laboratory who will advise on the removal of impurities. 

We expect to make further appointments as the projects develop and will keep the market updated on this front.

Funding

In August 2022 we completed a successful private placing raising GBP1.2 million. The placing was oversubscribed and supported by existing and new investors as well as by the directors.

We are also advancing discussions with financiers for the funding of its LSM and LHM processing facilities and has received significant inbound interest including from private equity, structured bond providers and institutions.

As we intend to primarily finance and operate the LSM and LHM facilities via our operating subsidiary TVL, it is anticipated that there will be no significant dilution to Alkemy's shareholders as part of the proposed financing process.

Partnership with bp for use of green hydrogen

In October 2022 we announced an MOU with bp Alternative Energy Investments who will seek to supply green hydrogen to TVL as part of bp's Hygreen hydrogen project which is currently under development. As part of this partnership, TVL and bp will evaluate the feasibility of further decarbonising TVL's processes and energy requirements via a switch from natural gas to green hydrogen.

Agreement to Lease at Wilton International

In September 2022 we announced an extension to the exclusivity period with Sembcorp Energy UK until 31 October 2022 to facilitate ongoing discussions with the aim of concluding legal documentation for the Agreement to Lease at Wilton International. We will provide further updates as and when there are any developments to report.

Market recognition and outlook

During the period we hosted a number of site visits in Teesside for brokers, investors and partners. The site visits were very well received and demonstrated to our guests the excellent facilities at Wilton International and at Teesside.

During the period we also engaged brokers Shard Capital and VSA Capital, who both produced detailed research notes which were highly supportive of our project.

The pace to decarbonise is accelerating and with a growing need for lithium hydroxide and now a growing preference from western OEM's to source lithium hydroxide using more local supply chains, Alkemy is well positioned to benefit from these changes.

We would like to take this opportunity to thank our shareholders for their continued support and look forward to reporting on our progress during 2022 as we deliver on our strategy.

Paul Atherley

Non-Executive Chairman

27 October 2022

STATEMENT OF COMPREHENSIVE INCOME

for the period ended 31 July 2022

 
                                                              For six               For the               For 
                                                              months               six months          period 
                                                               ended                ended 31         ended 31 
                                                              31 July              July 2021          January 
                                                               2022               (unaudited)            2022 
                                                            (unaudited)                             (audited) 
                                                                    GBP                       GBP         GBP 
                                                    Note 
 
 Administrative expenses                                      (708,890)                  (38,600)   (466,903) 
 Project Development 
  costs                                                       (649,397)                         -   (330,747) 
 Foreign exchange                                                                                           - 
  gains / (losses)                                              (7,777)                         - 
                                                           ------------      --------------------  ---------- 
 Operating profit                                           (1,366,064)                  (38,600)   (797,650) 
 
 Finance costs                                                  (1,535)                      (49)           - 
                                                           ------------      --------------------  ---------- 
 Loss before taxation                                       (1,367,599)                  (38,649)   (797,650) 
 Income tax                                                           -                         -           - 
                                                           ------------      --------------------  ---------- 
 
 Loss after taxation                                        (1,367,599)                  (38,649)   (797,650) 
 Other Comprehensive 
  income 
 Exchange gains / 
  (losses) on translation                                                                       - 
  of foreign operations                                           (978)                                     - 
                                                           ------------      --------------------  ---------- 
 Total other comprehensive 
  income                                                          (978)                         -           - 
 
   Total comprehensive 
   loss 
   for the year                                             (1,368,577)                  (38,649)   (797,650) 
                                                           ------------      --------------------  ---------- 
 
 Earnings per share                                    9 
 Basic and diluted ( GBP per 
  share)                                                        (0.228)                   (0.013)     (0.199) 
                                                           ------------      --------------------  ---------- 
 
 

The accompanying notes form an integral part of the financial information.

STATEMENT OF FINANCIAL POSITION

As at 31 July 2021

 
                                    Note          At 31          At 31             At 31 
                                              July 2022      July 2021           January 
                                            (unaudited)    (unaudited)    2022 (audited) 
                                                    GBP            GBP               GBP 
 ASSETS 
 Current assets 
 Trade and other receivables           8         15,197              -                73 
 Restricted cash                                  6,598              -                 - 
 Cash and cash equivalents                       13,242        729,904         1,113,923 
                                          -------------  -------------  ---------------- 
 Total assets                                    35,037        729,904         1,113,996 
                                          -------------  -------------  ---------------- 
 
 EQUITY 
 Equity Attributable to Owners 
  of the company 
 Share capital                        10        120,000         60,000           120,000 
 Share premium                                1,279,094              -         1,279,094 
 Foreign exchange reserve                         (978)              -                 - 
 Retained earnings                          (2,165,249)       (38,649)         (797,650) 
                                          -------------  -------------  ---------------- 
 Total equity                                 (767,133)         21,351           601,444 
                                          -------------  -------------  ---------------- 
 
 LIABILITIES 
 Current liabilities 
 Trade and other payables             11        635,911         38,600           512,552 
 Borrowings                                     166,259        669,953                 - 
                                          -------------  -------------  ---------------- 
 Total current liabilities                      802,170        708,553           512,552 
                                          -------------  -------------  ---------------- 
 
 TOTAL EQUITY AND LIABILITIES                    35,037        729,904         1,113,996 
                                          -------------  -------------  ---------------- 
 

The accompanying notes form an integral part of the financial information.

This report was approved by the board and authorised for issue on 27 October 2022 and signed on its behalf by:

Paul Atherley

Non-Executive Chairman

STATEMENT OF CHANGES IN EQUITY

for the year ended 31 January 2022

 
      Share    Share       Foreign    Retained     Total 
    capital    premium    exchange    earnings    equity 
        GBP        GBP         GBP         GBP       GBP 
 
 
 Balance at incorporation                -           -       -             -              - 
  on 21 January 2021 
 Total comprehensive 
  loss for the period                    -           -       -      (38,649)       (38,649) 
                                  --------  ----------  ------  ------------  ------------- 
 Total comprehensive 
  income for the period                  -           -       -      (38,649)       (38,649) 
 
 Transactions with 
  owners 
 Shares issued on incorporation     60,000           -       -             -         60,000 
                                  --------  ----------  ------  ------------  ------------- 
 Total Transactions 
  with owners                       60,000           -       -             -         60,000 
 
 Balance at 31 July 
  2021 (unaudited)                  60,000           -       -      (38,649)         21,351 
                                  --------  ----------  ------  ------------  ------------- 
 
 
 Balance at 1 February 
  2022                             120,000   1,279,094       -     (797,650)        601,444 
                                  --------  ----------  ------  ------------  ------------- 
 
 Total comprehensive 
  loss for the period                    -           -       -   (1,367,599)    (1,367,599) 
 Unrealised foreign 
  currency loss arising 
  on translation of 
  foreign operations                     -           -   (978)             -          (978) 
                                  --------  ----------  ------  ------------  ------------- 
 Total comprehensive 
  income for the period                  -           -   (978)   (1,367,599)    (1,368,577) 
                                  --------  ----------  ------  ------------  ------------- 
 Balance at 31 July 
  2022 (unaudited)                 120,000   1,279,094   (978)   (2,165,249)      (767,133) 
                                  --------  ----------  ------  ------------  ------------- 
 

The accompanying notes form an integral part of the financial information.

STATEMENT OF CASHFLOWS

for the period ended 31 July 2022

 
                                                      Six months            Six months                Year 
                                                         ended                 ended                  ended 
                                                        31 July               31 July               31 January 
                                                    2022 (unaudited)      2021 (unaudited)        2021 (audited) 
                                                                 GBP                     GBP                   GBP 
 
 Loss before tax                                         (1,367,599)                (38,649)             (797,650) 
 Adjusted for: 
 (Increase)/decrease in 
  receivables                                               (15,124)                       -                  (73) 
 (Decrease)/Increase in 
  trade creditors                                            123,197                  38,600               512,552 
                                                  ------------------  ----------------------   ------------------- 
 Net cash used in operating 
  activities                                             (1,259,526)                    (49)             (285,171) 
 
 Financing activities 
 Increase in restricted                                      (6,598) 
  funds                                                                                    -                     - 
 Cash from issue of Ordinary 
  shares                                                           -                  60,000             1,399,094 
 Proceeds from short term 
  borrowings                                                 166,259                 669,953                     - 
                                                  ------------------  ----------------------   ------------------- 
 Net cash from financing 
  activities                                                 159,661                 729,953             1,399,094 
 
 Net (decrease)/increase 
  in cash and cash equivalents                           (1,099,865)                 729,904             1,113,923 
                                                  ------------------  ----------------------   ------------------- 
 
 Cash and cash equivalents 
  at beginning of the year                                 1,113,923                       -                     - 
 Effects of foreign exchange 
  on cash balances                                             (816) 
                                                  ------------------  ----------------------   ------------------- 
 Cash and cash equivalents 
  at end of the year                                          13,242                 729,904             1,113,923 
                                                  ------------------  ----------------------   ------------------- 
 
 

The accompanying notes form an integral part of the financial information.

NOTES TO THE FINANCIAL INFORMATION

   1.    GENERAL INFORMATION 

The Company was incorporated on 21 January 2021 in England and Wales as a public company, limited by shares and with Registered Number 13149164 under the Companies Act 2006. On incorporation, the Company's name was Alkemy Capital Plc. On 4 February 2021, the Company's name was changed to Alkemy Capital Investments Plc. The Company's registered office address is 167-169 Great Portland Street, Fifth Floor, London W1W 5PF. On 25 February 2022 the Company formed a wholly owned subsidiary called Tees Valley Lithium Limited, a company seeking to establish a Lithium Hydroxide Monohydrate ("LHM") processing facility in Teesside, UK.

The Company's objective is to establish a LHM processing plant at its chosen site in Teeside, UK which will aim to initially produce LHM from lithium feedstock from various sources, to be sold to the UK and European mobile energy markets . In August 2022 the Company announced plans to build a lithium sulphate monohydrate plant at Port Hedland, Australia's largest export port located in the Pilbara region of Western Australia, to feed TVL's LHM facility in Teesside.

Other than the Directors, the Company has no employees.

The Directors who served during the period were Sam Quinn, Paul Atherley and Helen Pein.

   2.    ACCOUNTING POLICIES 

Basis of preparation

The principal accounting policies adopted by the Company in the preparation of the Company Financial Information are set out below.

The Company Financial Information has been presented in GBP, being the functional currency of the Company.

The Company Financial Information has been prepared in accordance with IFRS, including interpretations made by the International Financial Reporting Interpretations Committee issued by the International Accounting Standards Board. The standards have been applied consistently. The historical cost basis of preparation has been used.

The preparation of the financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires the Directors to exercise their judgment in the process of applying the Company's accounting policies.

In the opinion of the management, the interim unaudited financial information includes all adjustments considered necessary for fair and consistent presentation of this financial information. The interim unaudited financial information should be read in conjunction with the Company's audited financial statements and notes for the year ended 31 January 2022.

Standards and interpretations issued but not yet applied

A number of new standards and amendments to standards and interpretations have been issued but are not yet effective and, in some cases, have not yet been adopted by the UKEU. The Directors do not expect that the adoption of these standards will have a material impact on the Company Financial Information.

Going Concern

The Company Financial Information has been prepared on a going concern basis.

The Company's assets are comprised almost entirely of cash. The Directors have outlined their new strategy for the Company in the Chairman's Statement. As part of their assessment of going concern, the Directors have prepared cash forecasts to determine the cash requirements of the business as it continues to deliver on its strategy.

In order for the Company to be successful in its strategy, it will need to raise additional funds in the immediate term. The Directors are reasonably confident that such funds will be forthcoming as and when they are required, however as successful future fundraising in support of this strategy cannot be assured, a material uncertainty exists in this regard. The Directors have a reasonable expectation that the Company shall be able to secure adequate resources to continue in operational existence for the foreseeable future.

Accordingly, the Directors believe that as at the date of this report it is appropriate to continue to adopt the going concern basis in preparing the financial statements.

Financial assets

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of a financial instrument. Financial assets and financial liabilities are offset if there is a legally enforceable right to set off the recognised amounts and interests and it is intended to settle on a net basis. Cash comprises cash in hand and on demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value with maturities of less than 90 days.

Financial liabilities

The Company does not currently have any financial liabilities measured at fair value through profit or loss, therefore all financial liabilities are initially measured at fair value, net of transaction costs, and are subsequently measured at amortised cost. The Company recognises an equity instrument on any contract that evidences a residual interest in the assets of the Company. In this period Ordinary Shares were the only equity instrument, recognised at the point at which a call is made on the Shareholders.

Earnings per Ordinary Share

The Company presents basic and diluted earnings per share data for its Ordinary Shares. Basic earnings per Ordinary Share is calculated by dividing the profit or loss attributable to Shareholders by the weighted average number of Ordinary Shares outstanding during the period. Diluted earnings per Ordinary Share is calculated by adjusting the earnings and number of Ordinary Shares for the effects of dilutive potential Ordinary Shares.

   3.    USE OF ASSUMPTIONS AND ESTIMATES 

In preparing the Company Financial Information, the Directors have to make judgments on how to apply the Company's accounting policies and make estimates about the future. The Directors do not consider there to be any critical judgments that have been made in arriving at the amounts recognised in the Company Financial Information.

   4.    DIRECTORS' EMOLUMENTS 
 
               Directors'  Consultancy 
                     fees         fees  Social Security     Total 
31 July 2022      GBP'000      GBP'000          GBP'000   GBP'000 
-------------  ----------  -----------  ---------------  -------- 
P Atherley         12,000       27,000            1,096    40,096 
S Quinn            10,500       18,600              769    29,869 
H Pein              9,000            -                -     9,000 
Total              31,500       45,600            1,865    78,965 
-------------  ----------  -----------  ---------------  -------- 
 

No amount was paid or became payable to any of the Directors of the Company in the prior period, and there were no staff costs as no staff was employed by the Company during the prior period.

   5.    FINANCIAL RISK MANAGEMENT 

The Company uses a limited number of financial instruments, comprising cash and various items such as trade payables, which arise directly from operations. The Company does not trade in financial instruments.

Financial risk factors

The Company's activities expose it to a variety of financial risks: credit risk and liquidity risk. The Company's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Company's financial performance.

(a) Credit risk

The Company does not have any major concentrations of credit risk related to any individual customer or counterparty.

(b) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash, the Company ensures it has adequate resource to discharge all its liabilities. The directors have considered the liquidity risk as part of their going concern assessment.

Fair values

Management assessed that the fair values of other receivables approximate their carrying amounts largely due to the short-term maturities of these instruments.

   6.    CAPITAL MANAGEMENT POLICY 

The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. The capital structure of the Company consists of equity attributable to equity holders of the Company, comprising issued share capital and reserves.

   7.    FINANCIAL INSTRUMENTS 

The Company's principal financial instruments comprise other receivables. The Company's accounting policy and method adopted, including the criteria for recognition, the basis on which income and expenses are recognised in respect of this financial asset. The Company does not use financial instruments for speculative purposes.

There are no financial assets that are either past due or impaired.

   8.    TRADE AND OTHER RECEIVABLES 
 
               31 July   31 July 
                  2021      2021 
                   GBP       GBP 
 Prepayments    15,197         - 
 
   9.    EARNINGS PER SHARE 

The loss per share has been calculated using the loss for the year and the weighted average number of ordinary shares entitled to dividend rights which were outstanding during the year. There were no potentially dilutive ordinary shares at the year end.

 
                                                                            31 July       31 July 
                                                                               2022          2021 
                                                                                GBP           GBP 
 
 Loss for the period attributable to equity holders of the Company      (1,367,599)      (38,649) 
 
 Weighted average number of ordinary shares (number of shares)            5,999,999     3,000,000 
                                                                     --------------  ------------ 
 
 Loss per share ( GBP per share)                                            (0.228)       (0.013) 
                                                                     --------------  ------------ 
 

10. SHARE CAPITAL

Ordinary shares of GBP0.02 each

 
                                             Number    Amount 
                                          of shares       GBP 
 Issued, called up and paid - 31 July 
  2022                                    5,999,999   120,000 
 
                                          5,999,999   120,000 
                                        -----------  -------- 
 
 
                                             Number   Amount 
                                          of shares      GBP 
 Issued, called up and paid - 31 July 
  2021                                    3,000,000   60,000 
 
                                          3,000,000   60,000 
                                        -----------  ------- 
 

On incorporation on 21 January 2021, the Company issued 3,000,000 Ordinary Shares of GBP0.02 nominal value.

On 27 September 2021, 2,999,999 ordinary shares were issued for cash at 50p per share, raising GBP1,500,000 before expenses of GBP160,906

No further issues of Ordinary Shares were made during the period.

11. TRADE AND OTHER PAYABLES

 
                                   31 July   31 July 
                                      2022      2021 
                                       GBP       GBP 
--------------------------------  --------  -------- 
 Trade payables                    579,489    38,600 
 Other payables                     41,357         - 
 Accrued expenses                   15,064         - 
--------------------------------  --------  -------- 
 Total trade and other payables    635,910    38,600 
--------------------------------  --------  -------- 
 

12. POST BALANCE SHEET EVENTS

On 21 July 2022 the Company announced that it had entered into an MOU with Traxys North America LLC pursuant to which Traxys has agreed to source and supply lithium feedstock for TVL's planned processing facility in Teesside.

On 4 August 2022 the Company announced a placing of 1.2m new ordinary shares to raise gross proceeds of GBP1.2m, of which GBP178,000 of these shares were subscribed for by the directors.

On 4 August 2022 the Company announced the grant of 590,000 options to subscribe for ordinary shares in the Company at GBP1 per share to the directors and senior management.

On 8 August 2022 the Company announced plans to construct a Lithium Sulphate processing plant in Port Headland, Western Australia. The project will act as a refining hub for Australian lithium producers and provide a key feedstock for the Company's Teesside LHM processing plant. The Company also announced the grant of a further 100,000 options to consultants.

On 15 August 2022 the Company announced the signing of an MOU with Weardale Lithium to evaluate the potential to supply lithium feedstock.

On 29 September 2022 the Company announced the appointment of Tony Veitch to lead the development of the Port Hedland project, the listing of the Company's shares on the Frankfurt Stock Exchange, the extension of the Exclusivity Agreement for the site at Wilton International to 31 October 2022 and the grant of a further 100,000 options to consultants.

On 12 October 2022 the Company announced that it had entered into an MOU with bp Alternative Energy Investments Limited for the supply of green hydrogen to the Company's LHM processing plant in Teesside, UK.

13. ULTIMATE CONTROLLING PARTY

As at 31 July 2022, the ultimate controlling party of the Company was Paul Atherley.

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