Newsletter September

In this monthly newsletter, we will focus on the Rights Issue that was announced on September 16th. We will also give you a teaser about one of the most important mining events in Europe: Mining and Minerals Hall 2024 in Seville, Spain.

Progressing with Purpose: A Step Closer to Our Vision
At Eurobattery Minerals, our journey is defined by steady, responsible progress toward making Europe self-sufficient in critical battery minerals. From our work in Finland and Spain to the steps we have taken to develop our key project, Hautalampi, we are getting closer each day to achieving our goal of responsibly mined, carbon-zero nickel, cobalt, and copper production. Mining is a long-term endeavour that evolves through a series of well-planned stages. We are committed to navigating this process methodically and strategically.

Rights issue – from October 30^th to November 13^th 
We are now entering the next phase of this journey with a rights issue to raise SEK 35.5 million. While raising capital can often be viewed as a challenge, it is an essential step for us to maintain momentum and accelerate the completion of key milestones. These funds will allow us to finalize a bankable feasibility study for Hautalampi, and provide the working capital needed to continue operations and pursue growth opportunities.

The transaction in brief

• Upon full subscription in the Rights issue, Eurobattery will obtain gross proceeds of approximately SEK 35.5 million before issue costs, and an additional approximately SEK 10.0 million upon full utilisation of the Over-allotment issue. In the event of full utilisation of the Warrants, the Company can obtain an additional maximum of approximately SEK 31.2 million, assuming full subscription in the Rights issue and the Over-allotment issue.
• The subscription price in the Rights issue is SEK 0.70 per unit, corresponding to SEK 0.10 per share (the Warrants are obtained free of charge).
• For each (1) existing share held on the record date, one (1) unit right is obtained in the Rights issue. Three (3) unit rights entitle the holder to subscribe for one (1) unit. One (1) unit consists of seven (7) new shares and four (4) Warrants.
• The record date for the right to participate in the Rights issue is 28 October 2024, which means that the last day of trading in the Company's share including the right to participate in the Rights issue is 24 October 2024, and the first day of trading in the Company’s share excluding the right to participate in the Rights issue is 25 October 2024.
• The subscription period in the Rights issue will commence on 30 October and end on 13 November 2024.
• The Rights issue is covered by subscription commitments and underwriting commitments totalling approximately 60.0 per cent (approximately SEK 21.3 million), of which approximately 8.7 per cent through subscription commitments (approximately SEK 3.1 million) and approximately 51.3 per cent through underwriting commitments (approximately SEK 18.2 million).
• One (1) Warrant will entitle the holder to subscribe for one (1) new share during the exercise period commencing on 12 May and ending on 23 May 2025, at a price corresponding to 70 per cent of the volume-weighted average price of the Company’s share during the period commencing on 24 April and ending on 8 May 2025, but not less than the nominal share price and no more than SEK 0.12 per share.
• The Company has undertaken to repay the whole outstanding convertible loan of SEK 5.0 million to Fenja Capital II A/S and to issue a new convertible loan with a nominal value of SEK 4.0 million to Fenja Capital II A/S.
• The net proceeds from the Rights issue, the Warrants, and the Convertible issue are intended to be used for the preparation of a bankable feasibility study for the Hautalampi project (SEK 5.7 million), repayment of interest-bearing debt (SEK 11.1 million), working capital until at least the exercise period of the Warrants in May 2025 (SEK 3.4 million) as well as financial flexibility for further operations and potential future M&A transactions.

You can read the complete information about the Rights Issue here.

We continue to develop our projects according to plan
We recognize that, in the short term, progress can seem slow. However, it is important to remember that the real transformation often comes from long-term, dedicated efforts. The steps we take today are building the foundation for a future where Europe is a leader in responsibly sourced battery minerals.

“While raising capital can come with challenges, it is a necessary step to ensure we fulfil our commitment to building a resilient, ethical, and competitive European battery supply chain. I am confident that we are positioned to deliver significant value to our stakeholders, and I am very grateful for the continued support of our shareholders, partners, and community as we move forward,” says Roberto García Martínez, CEO of Eurobattery Minerals.

Several important steps taken this year
We have already achieved several major milestones this year, such as our acquisition of FinnCobalt Oy, the submission of an environmental permit application for Hautalampi, and the signing of a non-binding offtake agreement with Boliden AB. These accomplishments demonstrate our capacity to deliver value and create opportunities that will benefit all our stakeholders in the future. Thank you for your continued trust and support as we work together towards a cleaner and more just world.

Commodity prices – October 2023 to October 2024

Mining and Minerals Hall (MMH) 2024 is one of Europe’s premier mining industry events, taking place from October 15 to 17, 2024, at the Exhibition and Conference Centre (FIBES) in Seville, southern Spain. The focus is on innovation for responsible mining, to minimize the environmental impact and to maintain the social licence to operate. Eurobattery Minerals will be present at this major event, in the Swedish stand under the umbrella of CCHS, the Spanish-Swedish Chamber of Commerce. CCHS is a private, independent, non-profit association that aims to promote commercial and cultural relations between Sweden and Spain. Sweden is invited as Guest Country during this edition of MMH. You will be able to meet Eurobattery Minerals at the Swedish stand (Pab 3; 3150-3151) at MMH 2024. We will share the stand with the Spanish-Swedish Chamber of Commerce, Geosyntec Consultants, Axflow, Abbantia Law Firm, Raven Management and Volvo Cars.