HIGHLIGHTS
CHINA-BASED HIGH-PURITY MANGANESE PROJECT FEASIBILITY STUDY RESULTS
DEVELOPMENT PROGRESS UPDATE
The Feasibility Study referred to in this announcement is a Technical Feasibility of the establishment of the Battery Grade Manganese Sulphate Project Stage 1 Processing Plant in China (the Plant).
The Feasibility Study is based on the material assumptions contained in the Feasibility Study document accompanying this announcement. These include assumptions about the availability of funding. While the Company considers all of the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Feasibility Study will be achieved.
Investors should note that there is no certainty that the Company will be able to raise the amount of funding to develop the Plant when needed. It is also possible that such funding may only be available on terms that may be dilutive to or otherwise affect the value of Company’s existing shares.
It is also possible that the Company could pursue other ‘value realisation’ strategies such as a sale, partial sale or joint venture of the Plant. If it does, this could materially reduce the Company’s proportionate ownership of the Plant.
Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the Feasibility Study.
The Company’s long-term strategy is to develop into a low-cost manganese producer and provide security of supply across both traditional outputs and new materials being used in fast-growing energy storage industries.
Completion of the Feasibility Study follows the announcement by Firebird in September 2023 of the Company’s China-based Lithium Manganese Iron Phosphate (“LMFP”) growth strategy, aimed at establishing the Company as a low-cost producer of battery-grade MnSO4 (high-purity manganese sulphate) and Mn3O4 (high purity manganese tetra oxide). Both products are key cathode materials in LMFP batteries for electric vehicles.
LMFP is considered a key future cathode for electric vehicle (“EV”) batteries and is a significant upgrade from the Lithium Iron Phosphate (LFP) cathode, which is currently he most popular EV battery cathode.
Adding high purity manganese sulphate (MnSO4) to LFP, creates LMFP, delivering significant operational and safety benefits to a battery, including:
The Chinese chemical project design and engineering process differs from western processes.
A Feasibility Study is completed first and forms the basis of engineering design, government permitting and financing activities. The Feasibility Study contains a large portion of compliance and project economics assessment.
The Feasibility Study was completed by Hunan Chemical Engineering Design Institute Co., Ltd (“HCEDI”) and in line with stringent Chinese regulations. Importantly, HCDEI have completed several similar studies for the Chinese Manganese Sulphate industry.
HCEDI is the leading MnSO4 project design institute globally and Firebird’s in-country technical team have previously worked closely with HCEDI on several projects.
Results from the China-based high-purity manganese project Feasibility Study validates Firebird’s LMFP battery strategy to produce battery grade manganese sulphate in China.
These results have continued to build upon the solid platform for Firebird to successfully deliver on its vision to become a global leader in the manganese industry, combining mining and downstream processing with a dedication to the advancement of the Li-ion battery sector.
The company is working closely with HCEDI on preliminary plant design which is 50% complete. At the same time, equipment supplier engagement and due diligence of supplier’s manufacturing process and supplier’s customer experience are vital in the development and operational process in China. Through this process, the Company has identified that further efficiencies can be achieved and has applied for two patents on energy saving (calcining process & product drying), which will further improve the impressive economics of the Project.
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