Highlights
- Appian commits US$230 million financing package to USSM with initial funding of a US$120 million secured term loan facility and a US$70 million secured royalty financing arrangement
- Funding will finance development of USSM’s underground cobalt-nickel mining operation and construction of co-located battery metals recycling facility in Missouri, U.S.
- Positions USSM to become the first significant fully-integrated recycler and producer of battery metals for electric vehicle supply chains in the U.S.
- Demonstrates Appian’s continued success in credit and royalties investments along with expertise across upstream mining and mining adjacencies, capturing greater share of the commodity value chain
Appian Capital Advisory LLP (“Appian” or the “Company”), the investment advisor to long-term value-focused private capital funds that invest solely in mining and mining-related companies, announces that it has committed a US$230 million financing package to U.S. Strategic Metals (“USSM”), a U.S. battery metals producer. The initial funding consists of a US$120 million secured term loan facility, along with a US$70 million secured royalty financing arrangement and warrants (the “Transaction”). The Transaction will finance the development of USSM’s cobalt-nickel mine and construction of its hydrometallurgical battery metals recycling facility based in Fredericktown, Missouri, United States.
USSM will mine, process and recover battery supply chain critical minerals including cobalt, nickel, lithium and copper, through its Fredericktown facility, strategically located near U.S. gigafactories and automakers. USSM’s processing operations will be supplied with concentrates produced at its mine (located at site) and black mass, produced from lithium-ion battery production scrap and end of life lithium-ion batteries. The Transaction positions USSM to become the first significant fully-integrated recycler and producer of battery metals for the electric vehicle supply chain in the United States.
USSM’s Fredericktown recycling site has all major permits in place, with commercialization derisked through a pilot plant that has been operating since 2020. It is targeting commissioning in late 2024. USSM has invested over US$250 million of capital to date from leading investors and industry participants including the founders (Waterfield Holdings and Stacy W. Hastie), HPS Investment Partners and Glencore.
The Transaction is consistent with Appian’s commitment to grow its credit and royalty offering, providing bespoke non-dilutive capital solutions to its partners and building on its decade long track-record in the sector. It also complements the Company’s focus on energy transition metals, and highlights its expertise across both upstream mining and mining adjacencies, capturing a greater share of the commodity value chain.
Michael W. Scherb, Founder and CEO of Appian, commented:
“Appian is excited to partner with USSM to develop its cobalt-nickel mine and battery recycling and mineral processing operation in Missouri. USSM will shape the battery recycling landscape in the U.S. and play a critical role in establishing a domestic supply of essential minerals for the energy transition. This transaction is a further example of the continued success of Appian’s dedicated credit and royalties offering and the added value that our market-leading technical team brings to project owners.”
Stacy Hastie, CEO of US Strategic Metals, commented:
“Appian is a sophisticated, proven investor in this sector and USSM is excited to partner with a leading value-add capital provider. This new round of investment will enable us to process 240 tons of polymetallic feedstock per day in phase one, making USSM the only permitted domestic operation with significant processing capacity. This funding milestone positions us to provide automakers with a secure and ethical domestic supply of critical battery metals to help meet U.S. demand — a game changer for the auto industry and the U.S. strategic battery materials supply chain.”
For further information:
FGS Global +44 (0)20 7251 3801 / [email protected]
Charles O’Brien, Richard Crowley, Michael Stock
Appian Capital Advisory +44 (0)20 7004 0951 / [email protected]
Michael W. Scherb
About Appian Capital Advisory LLP
Appian Capital Advisory LLP is the investment advisor to long-term value-focused private capital funds that invest solely in mining and mining-related companies.
Appian is a leading investment advisor in the metals and mining industry, with global experience across South America, North America, Australia and Africa and a successful track record of supporting companies to achieve their development targets, with a global operating portfolio overseeing nearly 7,000 employees.
Appian has a global team of 81 experienced professionals with presences in London, New York, Toronto, Vancouver, Lima, Belo Horizonte, Montreal, Dubai, Johannesburg and Perth.
For more information please visit www.appiancapitaladvisory.com, or find us on LinkedIn, Instagram or Twitter/X.
About U.S. Strategic Metals
U.S. Strategic Metals, LLC (“USSM”), is North America’s only sustainable, long-term battery metals production and processing solution. USSM’s unique strengths make it the market leader in reliable, ethically sourced, and environmentally friendly strategic metals for US and global markets. It is the only vertically integrated producer and recycler of critical battery materials, including cobalt, nickel, copper, and lithium, in North America and is therefore strategically positioned to supply clean, domestic, and ethically sourced battery metals required to meet the unprecedented demand for electric vehicles and lithium-ion batteries. For more information, visit US Strategic Metals.
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