11:56 AM EDT, 06/27/2024 (MT Newswires) -- Rock Tech Lithium ( RCKTF ) on Thursday said it expects to receive up to 100-million euros in direct grants for its Guben lithium refinery project in Germany.

The company said it received a binding letter of intent signed by the minister for economic affairs in Brandenburg, Joerg Steinbach, for up to 90-million euros in subsidies for the Guben project. Signing and closing of the grant notice is expected in the fourth quarter.

In addition, Rock Tech's application for federal funding from the German Railway Authority is progressing and is expected to result in a contribution of another 10-million euros in grants for the construction of train loading and unloading infrastructure. The funding will support the company's goal of shifting transports from road to rail, a crucial component of the project's logistics concept.

The subsides will be paid out over the construction period as non-dilutive equity grants. Payout is contingent on finalization of full equity and debt financing.

An application process for up to 400-million euros of federal guarantees to support Rock Tech's debt financing is ongoing. A decision is expected within the year.

"In addition to these substantial subsidies, we have signed a binding feedstock agreement with a leading lithium trading house, C&D Logistics Group, for the procurement of raw material for our converters and received the full construction and operations permit approvals for Guben," said Rock Tech chief executive Dirk Harbecke.

Rock Tech intends to build and operate Europe's first lithium converter with a capacity of 24,000 tonnes of lithium-hydroxide-monohydrate per year. The refinery requires approximately 800-million euros in financing.

Rock Tech shares were last seen up $0.12 to $1.67 on the TSX Venture Exchange.

Price: 1.67, Change: +0.12, Percent Change: +7.74