US$125m investment by Sir Mick Davis’ Vision Blue Resources
Dec. 20, 2021
Sinova Global, the Canadian silicon metal production company with operations in Canada and the USA (“Sinova” or the “Company”), is pleased to announce that Vision Blue Resources (“VBR”), a clean energy focused natural resource investor led by Sir Mick Davis, has committed to invest up to US$125 million in the Company. The proceeds will be deployed to further the development of the Company’s silicon metal plant. Sir Mick Davis has been appointed Chairman of Sinova with immediate effect.
Sinova aims to become a leading North American supplier of ultra-high purity quartz from its fully permitted, world-class Horse Creek mine in British Columbia, Canada and of silicon metal from a major new manufacturing operation in Tennessee, USA.
Both operations are in the advanced development stage and will help meet the growing demand for products which are the building blocks for the green energy transformation. These products include solar cells (for photo voltaic solar panels); semi-conductor components; aluminium used in lightweight aerospace and automotive parts; next generation batteries and battery anodes.
Sinova Global Chief Executive Officer, Jayson Tymko, said:
“We are delighted to welcome Sir Mick Davis as our Chairman and also Vision Blue Resources as investors who embrace our view about the potential to create sustained and shared value.
“The recent announcement from Tennessee Governor Bill Lee further endorsed our plans and it is already clear that a real momentum is building to deliver on the promise of a green energy future.
“This will happen through responsible mining and the integrated manufacture of silicon metal for downstream products which secure supply for the fast-growing energy storage, green energy and automotive markets in North America.”
Sir Mick Davis, Chief Executive Officer of Vision Blue Resources, commented:
“Sinova has the potential to become a major new, North American supplier of sought-after high-purity quartz and silicon metal products that are vital to the energy transition. Sinova is developing a world class, high purity quartz deposit and the first new silicon metal plant in the USA in many years, giving it an enviable competitive position. The Company benefits from a highly experienced management team with huge operational expertise and we look forward to working with them to rapidly develop Sinova’s operations.
“Demand for silica and silicon metal is expected to grow dramatically to supply the expanding solar power and energy storage markets. At the same time supply for very high-grade feedstock, such as that produced by Sinova, is severely constrained and there is insufficient silicon smelter capacity to refine it. The location of Sinova’s operations within North America, close to high quality infrastructure provides preferential access to a captive market with significant trade protection.”
Sinova is developing and expanding production at the historic Horse Creek quartz mine near Golden, B.C. located adjacent to the Canadian Pacific railroad for ease of transportation to North American markets and beyond. The mine is fully permitted for over one million tonnes of production of high quality and ultra-high-purity quartz that can be used in high value silicon metal production.
Material from Horse Creek requires very limited processing, creates minimal by-products and requires less energy to process relative to the material from other quartz mines. This is the result of exceptionally high levels of silica purity (and correspondingly low levels of boron, iron, phosphorous and aluminum impurities) which makes the material of particular value for industrial customers serving the high technology markets segments which fundamental to a successful clean energy transition.
The Company is also establishing a state-of-the-art silicon metal manufacturing facility near Tiptonville, Tennessee in the Lake County Industrial Park which will be transformational for the region, create 140 new jobs and provide refined material serving the rapidly developing renewable energy, energy storage and automotive industries in the area. More than half of North America's current demand for silicon metal is met from imports due to a lack of new silicon metal plant manufacturing development over many years.
About Vision Blue Resources
VBR was founded in December 2020 by Sir Mick Davis to identify and capture opportunities in battery and technology minerals linked to EV & Grid Storage growth. Potential commodities include copper, nickel, cobalt, vanadium, manganese, graphite and rare earths.
VBR will target companies in established mining jurisdictions, with well advanced assets (mostly post feasibility study) that are scalable and can be brought into production rapidly. VBR aims to work with existing management teams to provide critical growth capital, technical support, experience in securing future finance, and delivery of ultimate exit strategy. Where possible, VBR will utilise a phased development approach based upon a self-financed expansion to achieve large scale revenue and cash flows.
About Sir Mick Davis
Sir Mick Davis has extensive capital markets and corporate transactions experience. During his career, he has raised almost US$40 billion from global capital markets and completed over US$120 billion of corporate transactions. Some of his successes are the creation of the Ingwe Coal Corporation in South Africa; the listing of Billiton on the London Stock Exchange;
the merger of BHP and Billiton into the largest diversified mining company in the world; the initial public offering of Xstrata plc on the London Stock Exchange in 2002 and Xstrata’s subsequent acquisitions of MIM Holdings and Falconbridge Limited, amongst others and most recently the successful merger of Xstrata and Glencore. Early in 2015 he and his partners successfully closed the X2 Resources fund after raising almost US$6 billion from a combination of sovereign wealth, pension and private equity funds.
Disclaimer – Forward-Looking Statements
Some of the statements in this press release may be forward-looking in nature (including estimates, forecasts and projections including, without restriction, regarding future performance, industry developments, and product markets), or statements and/or expressions of future expectations, in each case based on currently available information (collectively, “forward-looking statements”). Such forward-looking statements (i) are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict, (ii) reflect various assumptions concerning future industry performance, general business, economic and regulatory conditions, market conditions for Sinova’s products and other matters, which assumptions may or may not prove to be correct, (iii) are inherently subject to significant contingencies and uncertainties, many of which are outside the control of Sinova, and (iv) shall not be regarded as a representation by Sinova that the event, goal, action or occurrences referenced or otherwise contemplated therein will be achieved or occur. Actual results may differ from expectations conveyed in forward-looking statements due to changes caused by various risks and uncertainties, and those variations may be material. Such risks and uncertainties include but are not limited to changes of general economic conditions, changes in the performance of financial markets and future market conditions, unusual catastrophic loss events, performance or non-performance of third parties contractual obligations or otherwise, changes in the capital markets, acts of God, acts of terrorism, acts of war and pandemics, changes in laws and regulations particularly those affecting Sinova’s operations, and other circumstances that may cause the actual events or results to be materially different from those anticipated by such statements. Sinova does not make any express or implied representation or warranty as to the accuracy, completeness, or updated status of such statements. Forward-looking statements speak only as of the date of this document. Except as required by any applicable law or regulation, Sinova expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Sinova’s expectations with regard thereto, or any change in events, conditions or circumstances on which any such statement is based. Readers must conduct their own independent investigation of those matters that a reader deems appropriate or necessary without reliance upon Sinova or any forward-looking statement. Therefore, in no case whatsoever will Sinova and its affiliate companies be liable to anyone for any decision made or action taken in conjunction with the information and/or statements in this press release or for any related damages.