Falcon Energy Materials Secures C$6.52 Million for Battery Material Expansion

Falcon Energy Materials PLC has completed a non-brokered private placement, raising C$6.52 million through the issuance of 10,874,832 units at C$0.60 per unit. Each unit consists of one ordinary share and a non-transferable warrant, which can be exercised to purchase an additional share at C$0.75 within 36 months of closing. The investment, which exceeded the originally planned 10,000,000 units, demonstrates strong investor confidence in the company's strategic vision. Key investors including the La Mancha Fund and the Commodity Discovery Fund have shown significant support for Falcon's development plans.

Proceeds from the private placement will be allocated to advancing strategic projects in Morocco and Guinea, with a focus on becoming a fully-integrated supplier of battery anode material. The company aims to establish a comprehensive operation that includes a high-purity graphite production mine in Guinea and a value-added graphite conversion facility in Morocco. This integrated approach represents a significant step toward creating a sustainable supply chain for battery materials, particularly important as global demand for electric vehicles and energy storage systems continues to grow.

Matthieu Bos, Chief Executive Officer of Falcon, emphasized the importance of this financial backing, noting that the investment validates the company's development strategy for 2025. The securities issued are subject to a standard four-month hold period under Canadian securities laws, expiring on July 25, 2025. The transaction includes a unique condition related to La Mancha's participation, which is contingent upon shareholder approval at the upcoming annual general meeting. This approval will determine the final issuance of units to La Mancha and its potential status as a control person of the company.

Falcon's strategic approach focuses on creating a sustainable, transparent supply chain for battery anode materials, with a commitment to generating long-term benefits for host countries and communities. The company's proximity to European markets and strong environmental, social, and governance credentials position it as a promising player in the emerging battery materials sector. This funding milestone comes at a critical time as global markets seek reliable, ethically-sourced battery materials to support the transition to clean energy technologies.