LONDON, UK: Technology Minerals Plc (LSE: TM1), the first listed UK company to focus on creating a sustainable circular economy for battery metals, has signed binding Heads of Terms (HoTs) to acquire the remaining issued share capital of Recyclus Group Limited for new shares in the company.

Technology Minerals currently holds 48.35% of the issued share capital of Recyclus Group.

Subject to the completion of due diligence, which is imminent, the Proposed Transaction will be satisfied by the allotment and issue to the shareholders of Recyclus on completion of 921,544,596 new ordinary shares of £0.001 each in the capital of the Company.

For this purpose, the value of each Consideration Share will be 4.32 pence. The Consideration Shares will be allotted to the Sellers in proportion to their respective holdings of Recyclus shares. Post-acquisition, Recyclus Group will be accounted for on a consolidated basis.

Recyclus provides a national recycling initiative that supports the transition to carbon neutrality. Recyclus’ battery recycling capacity will prove essential in the shift from fossil fuels to electric transportation. Through its strategic support, Recyclus is an integral component to the recycling of Li-ion and lead-acid batteries and is a significant contributor towards the circular economy of battery metals.

• The acquisition strengthens Technology Minerals’ balance sheet and provides early cashflow from recycling operations controlled by Technology Minerals.
• Recyclus Group has developed a proprietary Li-ion battery processing plant and has a patent application in progress for de-sulphurising lead paste.
• With battery recycling expertise ahead of competitors which provides Technology Minerals with first mover advantage in the UK.
• Positions Technology Minerals to expand recycling operations in Europe and the USA.

James Cable, Chief Financial Officer of Technology Minerals, said: “The acquisition of Recyclus marks an important strategic move for the business with the potential to deliver significant shareholder value to both sets of shareholders.

The combination of the two businesses offers a differentiated, IP protected exposure to battery processing, aligning the enlarged business with the energy transition taking place and the circular economy. Our plan is to expand its commercial footprint in the UK and also the EU and US markets where we see the prospect for growth in line with the exponential growth in the electric vehicle markets and other battery-based sectors.

“We are excited by the opportunity to acquire Recyclus, taking a significant step in the next stage of Technology Minerals’ development and its circular economy strategy for battery metals. Our confidence in Recyclus is clear from our 48.35% stake in the business and this transaction is a logical progression that aligns perfectly with our twin-track strategy to create a circular economy for battery metals through both the raw material supply, and the reprocessing and re-use of end-of-life batteries.

“We believe the industrial scale opportunity for Recyclus is immense as the world transitions from fossil fuels to electrification. Recyclus aims to become a leading player in the recycling of Li-ion and lead-acid batteries to help overcome a critical lack of domestic industrial scale recycling. The business is well placed to ramp up its growth with cutting-edge technology, a first mover advantage, and two plants ready to come online when final approval from the Environment Agency comes through, with eight more planned over the next six years to meet the bourgeoning demand.”

Technology Minerals is developing the UK’s first listed, sustainable circular economy for battery metals, using cutting-edge technology to recycle, recover, and re-use battery technologies for a renewable energy future.