Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
I think that you're right Olly and Largo will do well post Glencore. Im thinking that BMN has much greater growth potential though as BE takes off. However VRFB success in 2020 could drive the V price higher and this will also further help Largo's recovery. Will have to wait until the new ISA tax year in April before taking a few though.
@VauxhallViva.
yes, Largo is up almost 20% since Dec 9th. Like Bushveld the stock is considered to be way undervalued. I'm in on both. and down 50% on each. I'm not worried, just waiting for the tax selling to end. Also, Largo should do very well when the Glencore contract expires in May 2020. They have paid Glencore a ton of money because of remeasurement, and nobody seems to understand how it works. I don't think the Largo management really understands how it is calculated even though they pay up at the end of each quarter and they took the biggest hit in Q1 2019 and it was totally unexpected.
@Olly Well something has boosted Largo +12% today..
and here's a $6m contract signed in June for supply over 24 months...
https://www.cellcubeenergystorage.com/cube-press-release-6132019
and this is a reminder of what Cellcube said back on 22 October...
'Enerox is the developer and manufacturer of Cellcube energy storage systems based on its proprietary vanadium redox technology that has close to 140 project installations and a 12 -year operational track record. Over the past year Enerox launched the Generation 4 product series, the most advanced (“VRFB”) on the market today as stated by independent industry experts. Product interest for its newest generation remains to be very strong. The company is nearing several large-scale contracts which will be executed once production capacity can be planned to adequate levels. The company has continuously being executing deliveries of its last year sales over the summer and is now engaging to finalize its first major sales, based on its strategy change last year. Albeit a slower than expected deal flow in the summer, the company experiences an unbroken stream of product interest in the grid scale energy storage markets globally with US, EMEA, and APAC regions leading the desired deployment hot spots. To assist in the sale of the Generation 4 product series, Enerox has a large re-insurer, Munich Re, to backstop the performance of the systems for projects during its long system life and is hence able to de-risk the technology in major projects. This adds another bankability qualification to CellCube’s viability for energy storage commercial deployment readiness. The market for large scale, long duration energy storage is finally here and Enerox believes it has the right product line-up to capitalize on the coming e ergy storage revolution. It has taken a lot of time and capital to get to a position that Enerox is at today, but until the company can produce and execute projects with a consistent number of units, the company will continue to be in a monthly working capital deficit position.'
Thanks alfa.
That's what I thought. However, if the demand for electrolyte really takes off (as we all expect) perhaps Largo could supply the extra V if needed.
Somebody give the SP a push up
Olly4 - I doubt that Largo would be involved given the clear priority that the purchase agreement gives to BMN/BE for the supply of Vanadium/electrolyte
alfacomp & richken
In addition to your great posts on the Cellcube acquisition.
The following is also of interest:
"Hive Energy has entered into a consortium with battery storage firms CellCube and Immersa to joint build grid-scale solar-plus-storage projects using CellCube’s vanadium redox flow batteries, with a maiden project already in the works".
https://www.solarpowerportal.co.uk/news/hive_energy_backs_long_duration_storage_with_immersa_cellcube_partnership
I am also interested in the consortium of investors for the acquisition of Cellcube.
Bill Gates and Bezos etc. have invested in the flow battery technology with ESS and am wondering if they have also thrown a few pounds towards the Cellcube acquisition. Could Largo also be involved? they certainly have loads of cash.
GL
Pangea Energy will build, own and operate the site and procure from CellCube products and services which may include an electrolyte service as a co-funding mechanism.
Pangea Storage Project
https://www.pangeastorageproject.com/
SIPPmeister - yep thats the feature that really makes it work for both parties.
Wow missed that - says it in black and white Enerox are involved, and we get first dibs on providing the V. Truly amazing deal.
Alfa - I know we are in the process of consortium acquiring Enerox from Cellcube, but I wasn't aware we would be supplying vanadium to their existing projects pipeline - if that's the case that is amazing!!
Mogwhy - yep 5000 tonnes of contained Vanadium (not Vanadium Pentoxide compound) is the acknowledged amount per GWh
Bingo!!!!
200 MWh = 1,000 tonnes of vanadium.
Is that correct ?
That's $35 Million worth of Vanadium in just one project
One of the biggest opportunities for Cellcube, and by extension BMN is the 50MW/200MWh Port Augusta battery in South Australia.
https://www.cellcubeenergystorage.com/cube-press-release-5142019
Thanks Alfacomp! The opportunities this will open up for Bushveld Energy and the Vanadium Electrolyte supply chain could be huge! This is one of those pivotal moments in the true vertical integration of Bushveld Energy and Bushveld Minerals!
This could be the hub of the BESS project in SA!
Perhaps part of why the MMs have been accumulating shares recently and are now showing signs of moving us up.
RichKen - yep it could be in less than 3 weeks - " It is intended that the Main SPA and other principal transaction documents will be signed on or before 31 December 2019, with completion to occur as soon as practical thereafter."
Surely it will not be long till we see an RNS here confirming the purchase for Bushveld Energy and its partners.
'and believe the Bushveld Consortium will see Enerox through to its full potential.”'
Says it all... And with orders already in the pipeline and ready to go but held up due to lack of working capital, these could be jump started and pushed through before the final payment is made... A cracking deal.
Part 2
Should the Seller or Bushveld Consortium elect not to enter into the Main SPA, the Seller has a call option to purchase the Initial Shares at a price equal to €1.65 million paid by the Bushveld Consortium to the Seller and Enerox, plus an amount equivalent to 12 per cent of such amount. In the event the call option is not exercised by the Seller, the Bushveld Consortium has an option to put the Initial Shares to the Seller for the same amount. Should the Seller not honor the put, the Bushveld Consortium would have the option of increasing its holding in Enerox by 50 per cent plus one share for an additional amount of €250,000. In circumstances where the Main SPA is not entered into because the Bushveld Consortium withdraws from the transaction, it would continue to provide the working capital payments to Enerox.
Brett Whalen, Interim CEO and Chairman of CellCube, commented:
“The current financial state of CellCube, as reported in the Company’s Corporate Update issued on October 22, 2019, has precipitated the need to monetize Enerox. Enerox has funded its ongoing operation, over the past year, through the use of credit facilities. To maximize the value attributable to CellCube, we believed now was the right time to enter into a transaction for the sale of Enerox and believe the Bushveld Consortium will see Enerox through to its full potential.”
About Cellcube Energy Storage Systems Inc.
CellCube is a Canadian public company listed on the Canadian Securities Exchange (symbol CUBE), the OTCBB (symbol CECBF), and the Frankfurt Exchange (Symbol 01X, WKN A2JMGP) focused on the fast-growing energy storage industry which is driven by the large increase in demand for renewable energy.
https://www.cellcubeenergystorage.com/cube-press-release-11122019
Part 1
CellCube Energy Storage Systems Inc. (“CellCube” or the “Company”) (CSE:CUBE), wishes to announce that it has signed a term sheet setting out the main terms and conditions on, and subject to which, a consortium of investors led by Bushveld Energy, a wholly owned subsidiary of Bushveld Minerals, (the “Bushveld Consortium”) would be willing, in principle, to acquire the entire issued share capital of Enerox GmbH (“Enerox”) from CellCube Energy Storage Systems Inc. (the “Seller”).
Highlights
The Bushveld Consortium has been granted exclusivity until the end of February 2020 to complete due diligence and negotiate definitive acquisition documents. The transaction will, if completed, see the Bushveld Consortium acquire the entire issued share capital of Enerox GmbH (“Enerox”) from the Seller for a total sum of €11,000,000, and a working capital financing for Enerox of €1.5 million. The transaction is structured in three parts:
Pursuant to the signing of the Term Sheet, The Bushveld Consortium will pay the Seller €300,000, which the Seller will in-turn contribute to Enerox as a surplus capital contribution for Enerox to fund its short terms working capital requirements.
An initial sale and purchase agreement (the “Initial SPA”), to be signed as soon as reasonably practicable after the signing of the term sheet, whereby the Bushveld Consortium would purchase 24.90 per cent of the share capital of Enerox (the “Initial Shares”) for a sum of €150,000, and contribute an additional sum of €1.2 million, in surplus capital contributions for working capital purposes to be paid as follows:
€300,000 immediately upon becoming a shareholder in Enerox;
€300,000 by 1 December 2019;
€300,000 by 1 January 2020; and
€300,000 by 1 February 2020.
A subsequent sale and purchase agreement (the “Main SPA”), subject to a technical, legal and financial due diligence, which will provide for the purchase of the remining 75.1 per cent of the shares of Enerox for a further consideration of €10.85 million, comprising:
€8.35 million payable upon completion of the Transaction. Up to €2.0 million of this consideration can be paid, at Bushveld’s discretion, in Bushveld Minerals shares (priced at the lesser of the 10-day volume-weighted-average-price prior to, or the price on, the 4th day before closing). It is intended that the Main SPA and other principal transaction documents will be signed on or before 31 December 2019, with completion to occur as soon as practical thereafter.
An additional deferred consideration of €2.5 million payable by the Bushveld Consortium to the Seller over 30 months comprising €500,000 payable every six months starting in June 2020 (the "Deferred Consideration").
The Seller will ensure that Enerox is debt free at transaction closure.