American Manganese Inc (CVE:AMY) (OTCPINK:AMYZF) (FRA:2AM) said Thursday it is advancing its lithium-ion cathode recycling technology (RecycLiCo) with support from the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP).
The company’s announcement comes after it just closed the third and final tranche of its non-brokered private placement for $213,770, as part of an overall $1.54 million fund-raise.
Proceeds will be used for the ReCycliCoTM pilot plant completion, proposed spin-out of the company's gold/copper and rare earth properties, as well as for general working capital.
READ: American Manganese buys specialized reactor from Asia to make cathode material as it bids to optimize its battery re-cycling process
In a statement, American Manganese said NRC IRAP will provide advisory services and conditional funding to support the company’s research and development project on the Synthesis of Cathode Material Precursors from Recycled Battery Scrap between November 4 and March 31, 2021.
The main objective of the project is to conduct a technical feasibility study on the synthesis of cathode material precursors with specific particle parameters, the company said.
American Manganese also acquired a specialized cathode precipitation reactor to achieve its objective in producing high-value final cathode products with the least amount of processing steps.
"We are proud to receive this support from NRC IRAP and we believe this project will continue to build on the success of our pilot plant project and intellectual property," said CEO Larry Reaugh.
"We are thrilled to kick-off this project on the production of cathode precursor materials. Our existing patents, for recycling lithium-ion cathode material, offers high extraction and purity potential and this project's intellectual property development could continue to strategically differentiate the company's commercial offering."
Cathode material used in the electric vehicles industry such as lithium nickel manganese cobalt oxide (NMC) and lithium cobalt aluminum oxide (NCA) has strict material quality parameters. The production of these modern cathodes from raw materials is a highly specialized and energy-demanding process, but the successful production of these materials is a significant value-added step.
Therefore, the company noted, it is the goal of this project to enable American Manganese's process to efficiently and directly recycle cathode scrap material into cathode material precursor to maximize the value of the recycled product.
Under the private placement, the company sold 1,068,850 units in the third tranche for a total of 7,714,770 units. Each unit consists of one common share of AMY and one common share purchase warrant. Each warrant will be exercisable for one share for $0.30 a piece for the two years following the issuance of the warrant.
Finder's fees payable for the last tranche total $9,000 cash. All securities issued under the private placement, including the third tranche, are subject to a four-month hold period from the issuance date of the securities.
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