10:31 AM EDT, 09/12/2025 (MT Newswires) -- Electra Battery Materials ( ELBM ) rose 10% Friday after signing a C$17.5 million funding term sheet with Invest Ontario and detailing terms of a previously announced US$30 million financing.

The company said the provincial funding will help complete construction of its cobalt sulfate refinery in Temiskaming Shores, which is expected to produce 6,500 tonnes of battery-grade cobalt sulfate a year, enough to support up to one million electric vehicles annually.

Electra said the Ontario commitment is part of an estimated C$100 million investment to finish the refinery and replaces a previously announced US$20 million strategic corporate investment. The company also launched a restructuring aimed at cutting convertible debt by about 60% and raising US$30 million in equity to support the financing plan.

In a separate release, Electra announced the detailed terms of its previously announced US$30 million financing in connection with its ongoing financial restructuring with the holders of senior secured convertible notes (lenders). The company entered into an engagement letter with some agents, in connection with a "best-efforts" private placement for the sale of a minimum of 40-million units at US$0.75 each.

Each unit consists of one common share and one three-year warrant, with each warrant entitling the holder to buy a share for US$1.25. The company also agreed to grant the agents an option to sell up to an additional 15% of the offering in units at US$0.75.

It added that the offering, scheduled to close on or around Oct. 15, is supported by a US$10 million conditional commitment from the lenders.

Proceeds from the offering are intended to be used to advance the completion and ramp-up of its cobalt refinery, advance its black mass recycling program, to repay US$2 million of unsecured 90-day promissory notes issued to the lenders on Aug. 22, to pay expenses connected to the restructuring and to support general working capital and corporate needs. If proceeds from the offering exceeds US$34.5 million, all such excess amounts will be used to buy back senior secured convertible notes from the lenders.

Shares of the company were last seen up $0.12 at $1.3 on the TSX Venture Exchange.

Price: 1.33, Change: +0.15, Percent Change: +12.71