Firebird Metals secures significant financing for China plant

Firebird Metals Limited (ASX: $FRB) has announced substantial progress and support from the Jinshi Government, China Construction Bank (Jinshi division), and leading chemical engineering contractor, China National Chemistry Southern Construction and Investment Co Ltd, for the development and construction of its Battery-Grade Manganese Sulphate Plant in the Jinshi High-Tech Industrial Park, Hunan Province. The combined indicative and non-binding agreements account for approximately 60% of the estimated financing requirements for Firebird to construct and commission its Plant.

Executive commentary on financing and construction agreements

We are extremely proud to announce these critical financing and construction agreements with the Jinshi Government, China Construction Bank (Jinshi division), and leading chemical engineering contractor China Chemical. Since announcing our plans to establish operations in China to produce high-purity manganese sulphate, we have been overwhelmed by the ongoing support and engagement from key stakeholders in China, led by the Jinshi Government, to ensure the Company has the resources required to deliver on our LMFP battery strategy. This strong in-country support has been a key contributor to the rapid growth we have delivered on the ground in China. I believe that Firebird is in a unique and extremely competitive position, as highlighted by our Feasibility Study, which showed a very low-capex pathway to establish operations in China in the next 18 months. Importantly, the study highlighted the significant cost, development, and operational advantages of building a plant in China and the exciting opportunity to transition Firebird into producer status. The Company is well positioned to deliver on its strategy to become one of the lowest cost high-purity manganese sulphate producers when compared to existing Chinese producers and western peers.

Summary of financing and outlook

Firebird Metals has secured substantial financial support for its Battery-Grade Manganese Sulphate Plant in China, with agreements accounting for approximately 60% of the estimated financing requirements. The company is on track to make a Final Investment Decision in H2 2024, with a 12-15 month construction timeline, ahead of first production. Once in production, Firebird aims to become one of the lowest cost manganese sulphate producers, aligning with the forecasted significant growth in the Lithium Manganese Iron Phosphate battery market. The company's long-term strategy is to become a key producer within the manganese industry and provide security of supply across both traditional and new material outputs, focusing on the fast-growing new energy industries. Firebird looks forward to providing further updates on financing arrangements as it works towards a Final Investment Decision on the Plant in H2 2024, positioning itself to supply into a rapidly growing LMFP battery market, which is forecast to become a >US$20 billion market by 2030.