In a statement, the company said it has entered into escrow to purchase about 12 and a 1/2 acres in Fernley and expects to close by September 15. The land is in a Qualified Opportunity Zone (QOZ), which offers a tax incentive to encourage private investment of capital into projects, businesses and property development in northern Nevada.
The company said it anticipates financing the building of the facility with a conventional 36-month construction financing of about $5.5 million, including the purchase cost of the building site, an initial 30,000 square-foot industrial building, and initial battery recycling equipment and utility infrastructure.
American Battery Metals said the location is ideal for its facility that will initially create at least 50 new jobs that could grow to over 200 new positions within the next 24 months.
The company noted that the facility site was picked for several reasons. It is near Tesla Inc's (NASDAQ:TSLA) Gigafactory 1 (a lithium-ion battery and electric vehicle subassembly factory) and has developed roads and rail. It also has low utility and energy costs and access to a highly qualified labor pool while being located within a QOZ. And with construction, there will not be any need for large scale site remediation.
"We continue to make progress in advancing towards commissioning our new battery recycling plant in the first quarter 2021,” said CEO Doug Cole. “Nevada is an emerging leader in welcoming new, sustainable technology companies and ‘The Silver State’ has rolled out their welcome mat for American Battery Metals Corporation.”
He added: “We intend to grow and expand our business units in Nevada, and plan to be a strong regional industrial employer over the next several decades."
Once the plant is operational in 1Q 2021, the company said it anticipates that the construction financing will be refinanced with long-term project financing with a large-scale lending institution that may include Small Business Administration (SBA) loan guarantees.
American Battery Metals’ stock recently increased by 3.5% to $0.12 a share in New York.
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