Aqua Metals Executes $33 Million Non-Binding Loan Term Sheet with One of The World’s Largest Privately Held Companies

Funding Intended to Complete Phase One of the Sierra ARC Commercial Lithium-Ion Battery Recycling Facility, Commissioning in 2024

RENO, Nev., May 15, 2024 (GLOBE NEWSWIRE) -- Aqua Metals, Inc. (NASDAQ: AQMS), a pioneer in sustainable lithium-ion battery recycling, today announced the signing of a non-binding term sheet with one of the world’s largest privately held companies for a secured credit facility of up to $33 million. This proposed strategic financial collaboration is intended to provide financing for the completion of the Phase One development of the Sierra AquaRefining Campus (ARC).

Simultaneous to this development, Aqua Metals announced its pricing of an equity raise of $7 million, before commissions, discounts and expenses, to support ongoing operations and strengthen Aqua Metals’ balance sheet, which was an important pre-condition for the strategic lender. The equity financing is expected to close on Friday, May 17, 2024.

Strategic Financial Collaboration
The term sheet is non-binding, except for certain confidentiality and break-up provisions, and contemplates a closing by June 30, 2024, subject to the lenders’ continuing due diligence and the parties’ negotiation and execution of definitive agreements.

Aqua Metals will strengthen its financial position through this strategic relationship with one of the world’s largest privately held companies, which is investing heavily in a global portfolio of decarbonization technologies. An extensive two-month review by the lender thoroughly examined the company’s financial health, ability to generate revenue and service the debt, strategic partnerships, and innovative supply and off-take agreements. In advance of this engagement, Aqua Metals also recently completed an independent engineering report and lifecycle analysis, conducted by ICF International, which validated the Company’s groundbreaking technology and its substantial reductions in waste and greenhouse gas emissions. This strategic financial partnership will bolster Aqua Metals’ capacity to advance its sustainable lithium battery recycling operations. The lender required its name to be withheld until the definitive loan agreement is executed.

Focus on Sustainability and Economic Impact
The funding is intended to cover existing and future capital costs and facilitate the completion of Phase One of the Sierra ARC, which will consist of a commercial scale lithium-ion battery recycling facility capable of processing 3,000 tons per year of black mass feedstock material recovered from pre-processed lithium-ion batteries. The expected critical mineral output of the first phase of the Sierra ARC (lithium carbonate, nickel, cobalt and other metals) is equivalent to about 30,000 average sized EV battery packs. The completion of Phase One of the Sierra ARC is crucial for scaling up the production of sustainably recycled battery materials and building a circular supply chain for critical minerals essential to the United States’ rapidly growing battery manufacturing capacity.

“This agreement marks a significant milestone in securing the financial resources necessary to complete the Sierra ARC, which is pivotal to our strategy of establishing a closed-loop supply chain for battery recycling,” said Steve Cotton, CEO of Aqua Metals. “This partnership will not only support our financial stability but also will reinforce our commitment to innovation and sustainability in the lithium battery recycling sector.”

Building a Sustainable Future
The investment will enable Aqua Metals to enhance its operational capacity and further develop its patented AquaRefining technology, which has set new standards for performance and environmental responsibility in the battery recycling industry. Unlike traditional recycling methods, AquaRefining uses an electrified process that vastly reduces production of CO2 greenhouse gases and entirely eliminates sodium sulfate waste streams, aligning with global sustainability goals.

“By finalizing this term sheet and moving towards a comprehensive financing agreement, we are positioning Aqua Metals to meet the growing demand for recycled battery materials,” added Cotton. “This strategic funding will support our continued growth and our commitment to providing a sustainable, low-cost supply of critical minerals.”

About Aqua Metals
Aqua Metals, Inc. (NASDAQ: AQMS) is reinventing metals recycling with its patented AquaRefining™ technology. The Company is pioneering a sustainable recycling solution for materials strategic to energy storage and electric vehicle manufacturing supply chains. AquaRefining™ is a low-emissions, closed-loop recycling technology that replaces polluting furnaces and hazardous chemicals with electricity-powered electroplating to recover valuable metals and materials from spent batteries with higher purity, lower emissions, and minimal waste. Aqua Metals is based in Reno, NV and operates the first sustainable lithium battery recycling facility at the Company’s Innovation Center in the Tahoe-Reno Industrial Center. To learn more, please visit www.aquametals.com.

Aqua Metals Social Media
Aqua Metals has used, and intends to continue using, its investor relations website (https://ir.aquametals.com), in addition to its Twitter, Threads, LinkedIn and YouTube accounts at https://twitter.com/AquaMetalsInc (@AquaMetalsInc), https://www.threads.net/@aquametalsinc (@aquametalsinc), https://www.linkedin.com/company/aqua-metals-limited and https://www.youtube.com/@AquaMetals respectively, as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

Safe Harbor
This press release contains forward-looking statements concerning Aqua Metals, Inc. Forward-looking statements include, but are not limited to, our plans, objectives, expectations and intentions and other statements that contain words such as "expects," "contemplates," "anticipates," "plans," "intends," "believes", "estimates", "potential" and variations of such words or similar expressions that convey the uncertainty of future events or outcomes, or that do not relate to historical matters. The forward-looking statements in this press release include our expectations for completing and funding the proposed $33 million credit facility, our expectations for closing the $7 million equity financing, our expectations for completing the Phase One of our Sierra AquaRefining Campus, our ability to recycle lithium-ion batteries and the expected benefits of recycling lithium-ion batteries. Those forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially. Those risks include (i) the risk that we may not be able to close the proposed secured credit facility on terms favorable to Aqua Metals or at all, (ii) the risk that we may not close on our $7 million equity financing, (iii) the risk that we may not be able to complete the Phase One of our Sierra AquaRefining Campus or, if we do, that we will not obtain the expected benefits of the development, (iv) the risk that we will not be able to receive additional capital with which to continue our present level of operations and completion of the Sierra AquaRefining Campus as and when needed, and (v) those other risks disclosed in the section "Risk Factors" and are included in our Annual Report on Form 10-K filed on March 28, 2024. Aqua Metals cautions readers not to place undue reliance on any forward-looking statements. The Company does not undertake and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur, except as required by law.

Contact Information

Investor Relations
Bob Meyers & Rob Fink
FNK IR
646-878-9204
aqms@fnkir.com

Media
Matt Roberts
Aqua Metals
775-446-7245
matt.roberts@aquametals.com

Source: Aqua Metals

Released May 15, 2024