Clean TeQ Sunrise Project Update

MELBOURNE, Australia, June 18, 2020 (GLOBE NEWSWIRE) -- Mr Sam Riggall, Managing Director and Chief Executive Officer of Clean TeQ Holdings Limited (Clean TeQ or Company) (CLQ:ASX; CLQ:TSX; CTEQF:OTCQX), is pleased to provide an update in relation to recent activities at the  Clean TeQ Sunrise Project (Clean TeQ Sunrise or Project).

Project Execution Plan

The Company has been progressing the Project Execution Plan (PEP) in conjunction with Fluor Australia Pty Ltd, part of the Fluor global engineering group headquartered in Irving, Texas. 

As previously advised, the PEP deliverables are an update to the 2018 Definitive Feasibility Study (DFS) production forecast, resources, reserves and operating and capital cost estimates for the Project.  These will incorporate the latest design and engineering work, as well as a revised master schedule for the Project. 

On completion of the PEP, and subject to funding, Sunrise is one of the few development-ready nickel-cobalt battery material projects in the world.

While the PEP works are substantially complete, there have been delays in finalising some workstreams.  The Company estimates that completion of these workstreams, as well as the requisite review and sign-off processes, will result in the announcement of the PEP results being delayed to late in Q3 2020. 

Financing Update

The partnering process the Company has been running, with the support of Macquarie Capital, remains on-going.  Although good interest has been expressed by a number of parties through that process, and engagement across the EV supply chain continues, to date the Company has not been able to secure an investment partner for the Project. 

As such, the Company is not able to commit to a final investment decision (FID) in mid-2020, as was targeted. 

Not unexpectedly, the COVID-19 pandemic has presented difficult conditions for financial markets and challenges for funding new project development.  However, the Company remains optimistic on the outlook for demand growth in the electric vehicle (EV) and lithium-ion battery sectors, and in particular the strategic importance of Sunrise as one of the largest suppliers of battery-grade nickel and cobalt into the global EV supply chain.