“Collaboration between academia and business is vital in our work to create a more sustainable future. As a provider of battery minerals powering the electric revolution, Eurobattery Minerals is committed to supporting this development and being part of this important research project on strategic metals and minerals”, said Roberto García Martínez, CEO of Eurobattery Minerals.

The research centre ”Smart Exploration Research” is run by Alireza Malehmir, Professor in Geophysics at Uppsala University and includes experts in geological science, nanotechnology, data analysis, drill technology, drones and robot solutions. The project consists of participation from researchers at Lund’s University, Stockholm’s University and Gothenburg’s University, as well as representatives from Epiroc, Nordic Iron Ore, First Quantum Minerals, Tyréns, Samarkand2015, BitSimNow, Eurobattery Minerals and Amkvo.

For additional information see announcement from the Swedish Foundation for Strategic Research – https://strategiska.se/en/uppsala-university-lead-the-center-for-strategic-metals/.

“We are committed to providing the raw materials needed for batteries to power the green transition across Europe. To achieve this and create the best shareholder value, we have decided not to renew the licenses in Sweden and instead focus our attention on our battery mineral mine projects in Hautalampi in Finland and Corcel in Spain”, said Roberto García Martínez, CEO of Eurobattery Minerals.

The non-renewal decision is based on current challenges associated with mining in Sweden, where the uncertainty in the permit process adds vast ambiguity to the investment case. Furthermore, the decision follows from the Company’s increased attention to its Hautalampi mining project in Finland and Corcel project in Spain. Both projects are well-advanced, and analyses point to high nickel, copper and cobalt grades with a strong economic outlook. 

 “Following the completion of the additional stake acquisition of FinnCobalt and the approved environmental impact assessment for the Hautalampi project, we have made important progress towards an operational battery mineral mine in Finland”, Roberto García Martínez, CEO of Eurobattery Minerals comments the second quarter 2023.

Strategic and operational highlights Q2 2023

• Eurobattery Minerals will receive approximately SEK 17.4 million through warrant redemption. 

• The Hautalampi ore reserves and minerals resources reserves have been classified in the highest categories as viable mining projects in the United Nations Framework Classification for Resources (UNFC). 
• Eurobattery Minerals received an additional report from the scientists in the research partnership that further confirms the viability of the new method for large-scale extraction of rare earth elements in Eurobattery Minerals’ Fetsjön project in Sweden. 

• The Finnish Safety and Chemicals Agency (Tukes) has entered the Hautalampi mining right in the mining register pursuant to the Mining Act. The Hautalampi mining area has the full legal force behind it for its underground mine and its concession.

• Outokumpu town Urban Development Board has initiated the zoning and site plan change for the Hautalampi mine project.

Key financial figures for Q2 2023

• Net sales amounted to SEK 0 thousand (Q2 2022: SEK 0 thousand).
• Operating profit/loss after financial items totalled SEK -6,637 thousand (Q2 2022: SEK -10,046 thousand).
• Earnings per share after financial items before dilution amounted to SEK -0.26 (Q2 2022: SEK -0.64).
• Earnings per share after financial items after dilution amounted to SEK -0.20 (Q2 2022: SEK -0.59).
• Cash flow from operating activities was SEK -11,225 thousand (Q2 2022: SEK -12,325 thousand).

Key financial figures for the first half year 2023

• Net sales amounted to SEK 0 thousand (6M 2022: SEK 0 thousand).

• Operating profit/loss after financial items totalled SEK -9,925 thousand (6M 2022: SEK -12,403 thousand).

• Earnings per share after financial items before dilution amounted to SEK -0.60 (6M 2022: SEK -0.79).

• Earnings per share after financial items after dilution amounted to SEK -0.29 (6M 2022: SEK -0.73).

• Cash flow from operating activities was SEK -1,833 thousand (6M 2022: SEK -11,786 thousand).

Significant events after the period

• The Board of Directors has resolved to issue 2,855,856 shares with the support of the authorization by the shareholders meeting on 13 June 2023. The share issue constitutes part of the Company’s acquisition of an additional 30% of the shares of FinnCobalt Oy. Following the closing, Eurobattery Minerals owns 70% of FinnCobalt Oy and the Hautalampi project.

• The first phase of the environmental permit process for the Hautalampi mine project has been completed successfully as the environmental impact assessment (EIA) has been fully approved by the Finnish Centre for Economic Development, Transport and the Environment (ELY).

Detailed financial information
The Q2 report for 2023 of Eurobattery Minerals AB is available for download at the Company’s website and can be viewed in the attachment of the release (see below).

”With the approved environmental impact assessment, we are one major step closer to mining in Finland and to supplying responsibly mined battery minerals to the European industry. The approval also provides us good guidance towards the environmental permit application we are working on,” said Roberto García Martínez, CEO of Eurobattery Minerals.

According to the approved EIA, the project’s implementation, based on current information and assessment, is technically, socially, and environmentally feasible, taking mitigation measures into account. In connection with the ongoing work for the environmental permit application, several tasks will be carried out. These are ground surveys, characterizations, water management and detailed process planning.

“In 2020, we announced our intention to acquire 100 per cent of the Hautalampi battery mineral mine project. Following the closing of the directed issue announced today, we have acquired an additional 30 per cent stake, thus continuing to deliver on our target. Alongside the financial aspects of the project, we have made significant advancements in our work to open a battery mineral mine and supply responsible minerals to Europe, powering the green transition,” said Roberto García Martínez, CEO of Eurobattery Minerals AB.

The Board of Directors of Eurobattery has today resolved to carry out a directed share issue of a maximum of 2 855 856 new shares. In the event that the share issue is fully subscribed, the aggregate number of shares and votes in the Company increase from 33 738 202 to 36 594 058. The subscription price in the share issue has been determined pursuant to applicable terms for the acquisition of the shares of FinnCobalt and corresponds to the volume weighted average price for the Company’s shares on NGM Nordic SME during the 10 trading days immediately prior to the day of the issue resolution.

The issued shares constitute part of the consideration for the shares in FinnCobalt that the Company acquires through the exercise of the second option pursuant to the Investment and Shareholders Agreement, which included an option to successively acquire FinnCobalt and which was entered into on 11 May 2020 and became effective on 27 May 2020. Pursuant to the terms of the second option, Eurobattery shall no later than 27 July 2023 pay an aggregate cash consideration of EUR 250 002 and issue shares in Eurobattery with a value of an aggregate of EUR 1 000 002 to the three founders of FinnCobalt. The payment of cash consideration and the delivery of the issued shares will be made simultaneously.

“I am very pleased with how work progresses in our Finnish battery mineral mine project. Yesterday we got the official listing in the Finnish mining right register, and today, the authorities announced the start of the zoning and site plan change. It is encouraging to see how our team in Finland work in close co-operation with the local authorities to move the project forward,” said Roberto García Martínez, CEO of Eurobattery Minerals.

The land zoning is according to the Land-use and Building Act in Finland and intends to support the site construction of the area in the near future. This includes building permits and supervision by authorities.

Outokumpu town structural services tendered the preparation of the zoning for the area of the Hautalampi mine. Sweco Finland Oy was selected by Outokumpu town as a zoning developer of the site plan for the Hautalampi mine area.

“We are very pleased with the progress made for the zoning by Outokumpu town, and we are looking forward to future co-operations with stakeholders, including landowners and city councils,” says Ilari Kinnunen, Managing Director of FinnCobalt Oy.

“I am very pleased that the Hautalampi mining right has now been registered in Finland’s official mining register. This is an important step in our preparations for starting the mine”, said Roberto García Martínez, CEO of Eurobattery Minerals AB.

The new report further confirms the viability of the new method for large-scale extraction of rare earth elements in Eurobattery Minerals Fetsjön project in Sweden. The method allows recovery of rare earth elements through chemical treatment at low temperatures, thus avoiding costly and time-consuming mechanical treatment. Low-temperature treatment allows for the circular use of the chemicals. In addition, the scientists conclude that the method, patented in Poland, can also be used to extract these critical raw materials from other geological formations. 

“To mine rare earth elements from Europe is a key priority for the region. It would secure our supply of these critical minerals for the green transition and release us from our unhealthy dependency on conflict minerals. This new method for very effective extraction allows for exploration of European minerals deposits, such as our project in Fetsjön”, said Roberto García Martínez, CEO of Eurobattery Minerals. 

The research project Eurobattery Minerals is supporting is conducted by Prof. Jaroslaw Majka at Uppsala University and Prof. Maciej Manecki at AGH University of Science and Technology in Krakow, supported by Ph. D. candidate Julia Sordyl representing both universities. The parties are investigating the opportunity for a large-scale pilot.

More information about the project: https://investors.eurobatteryminerals.com/en/press-releases/new-ground-breaking-method-allows-nearly-100-recovery-of-rees-in-fetsjoen/. 

The correction refers to the fact that the press release was incorrectly classified as MAR and therefore contained the paragraph that follows:
This information is information that Eurobattery Minerals is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2023-06-13 12:54 CEST.

The press release should not have included this paragraph as it is not classified as MAR.

Adoption of the income statement and balance sheet
The annual general meeting resolved to adopt the income statement and balance sheet as well as the consolidated income statement and consolidated balance sheet.

Allocation of result
The annual general meeting resolved that all funds available to the annual general meeting shall be carried forward.

Discharge from liability
The members of the board of directors and the CEO were discharged from liability for the financial year 2022.

Election of the board of directors and auditor and remuneration
The annual general meeting resolved, in accordance with the proposal from the shareholder DH Invest AB, that the board of directors shall consist of three board members without deputy board members. It was further resolved that the Company shall have a registered accounting firm as auditor.

Furthermore, it was resolved, in accordance with the proposal from the shareholder DH Invest AB, that an aggregate annual fee of SEK 410,000 shall be paid to the board members, of which SEK 250,000 to the chairman of the board of directors and SEK 80,000 to each of the other board members elected by the annual general meeting. It was resolved, in accordance with the proposal from the shareholder DH Invest AB, that the auditor’s fee shall be paid in accordance with approved invoice.

The annual general meeting resolved, in accordance with the proposal from the shareholder DH Invest AB, to re-elect Henrik Johannesson, Jan Olof Arnbom and Roberto Garcia Martinez as members of the board of directors. Henrik Johannesson was re-elected chairman of the board of directors.

Baker Tilly MLT Kommanditbolag was re-elected as auditor. Baker Tilly MLT Kommanditbolag has informed the Company that the authorised public accountant Stein Karlsen will be the auditor in charge.

Resolution to issue performance shares to the Company’s CEO
The annual general meeting resolved, in accordance with the board of directors’ proposal, to issue performance shares to the Company’s CEO, Roberto Garcia Martinez. The complete proposal is included in the notice to the annual general meeting which was published on 12 May 2023.

Resolution on incentive program for the Company’s CEO
The annual general meeting resolved, in accordance with the board of directors’ proposal, on an incentive program for the Company’s CEO. The complete proposal is included in the notice to the annual general meeting which was published on 12 May 2023.

Issue authorisation
The annual general meeting resolved, in accordance with the board of directors’ proposal, to authorise the board of directors to, on one or several occasions until the next annual general meeting, with or without deviation from the shareholders’ pre-emptive rights, against payment in cash, non-cash consideration or through set-off, resolve on new issues of shares, convertibles or warrants corresponding to 40 percent of the total number of shares in the Company as of the date of the annual general meeting 2023.