NEW YORK, Nov. 12, 2024 (GLOBE NEWSWIRE) -- TMC the metals company Inc. (Nasdaq: TMC) (“TMC” or “the Company”), an explorer of lower-impact battery metals from seafloor polymetallic nodules, today provided a corporate update on the expected submission date of the application to the ISA for an exploitation contract, and an expanded company strategy.
Update Highlights:
- Following discussions between TMC subsidiary Nauru Ocean Resources Inc (NORI) and its sponsoring state, the Republic of Nauru, NORI has set the date of June 27, 2025 for the expected submission of its ISA exploitation application
- Given it is unlikely the ISA would consider an application prior to its March 2025 session, the Republic of Nauru has requested in a formal letter that the ISA clarify the submission and review process during the March session, with the goal of providing certainty for all stakeholders and allowing for review to begin immediately after NORI’s submission under an agreed-upon process
- Following the expected submission of NORI’s application, the Company expects quarterly cash use of less than $5 million as the application is reviewed, and does not expect to raise funds for capital expenditures relating to the preparation of the Hidden Gem vessel for commercial production until increased regulatory certainty is achieved or non-dilutive financing is secured
- The Company has begun to explore a new strategy to (1) develop a services business for seafloor resource development and (2) optimize and diversify its resource portfolio within international waters and in certain national jurisdictions
Gerard Barron, TMC Chairman and CEO, commented: “After many years of conversations with current and prospective shareholders, it remains clear that the key catalyst everyone is waiting for is the delivery of the Mining Code. Following discussions with Member States and the incoming ISA Secretary-General during the UN General Assembly in September, I remain confident that the work on the Mining Code remains on track. These discussions have also informed the decision to submit the NORI application in June 2025, in consultation with Nauru. Investors can be assured that we will not be raising funds for CAPEX related to the Hidden Gem vessel until we see sufficient regulatory progress, whether through delivery of the Mining Code or additional clarity on the ISA’s review of our application based on the draft regulations.
But TMC’s value proposition extends beyond a narrow focus on the Mining Code and NORI application. We are now in a strong position to leverage our investment of over half a billion dollars and capabilities developed over the last decade-plus, as the eyes of the world’s largest economies turn to the seafloor to produce the metals needed for the energy transition, defense, infrastructure and the needs of a growing world population. I look forward to providing further color on this strategy.”
Application Submission and Strategy
NORI has set the date of June 27, 2025 for its expected submission of its ISA exploitation application. According to the ISA Council's decisions ISBA/28/C/24 and ISBA/28/C/25, if NORI submits an application for a plan of work for exploitation before the RRPs have been adopted, the ISA Council at its next meeting, as a matter of priority, will consider the process for considering such an application. The ISA Council is not scheduled to meet again until March 2025 and the Company believes it is unlikely that the ISA Council would consider an application for a plan of work for exploitation before this session. In light of this, Nauru has formally requested that the ISA clarify the submission and review process for such an application at the March 2025 meetings before NORI submits the Application and, therefore, has decided to submit the Application after the March 2025 meetings on June 27, 2025.
ISA Progress on the Mining Code
The ISA Council completed a first reading of the consolidated text of the draft Mining Code at the July 2024 Council meeting. It was agreed that a revised consolidated text of the draft Mining Code would be provided to the ISA Council by the end of November 2024. The Company has engaged with Leticia Reis de Carvalho, the newly-elected Secretary General of the ISA, and expects to work with Ms. Carvalho in a constructive manner as the ISA continues to work to have the final Mining Code adopted.
Operating Expense Reductions and Deferral of Capital Expenditures
Following the expected submission of the Application by NORI, the Company expects quarterly cash use of less than $5 million as the Application is reviewed. The Company has already begun the process of reducing or eliminating certain operating expenses to ensure the Company’s financial resiliency.
Further, the Company does not expect to raise funds for capital expenditures related to the preparation of the Hidden Gem vessel for commercial production until such time as the final Mining Code is adopted, the Application is approved, or until other potential non-dilutive strategic financing is in place. The Company expects to provide further updates on the potential timing of the start of commercial production following sufficient clarity on these items.
Expanded Company Strategy
Given the significant rise in seafloor resource exploration opportunities around the globe and the Company’s leadership position and experience in this industry, having invested over $500 million since inception to achieve milestones in environmental research, resource definition, test mining and test processing, the Company is exploring a new strategy to (1) develop a services business for seafloor resource development and (2) optimize and diversify its resource portfolio within international waters and in national jurisdictions. We are in discussions with several parties on services contracts to provide our expertise in the areas of new exploration plans of work, resource definition, environmental impact assessments, data management and offshore campaign execution. We are also actively evaluating opportunities for the Company to enter new exploration contract areas, already permitted properties and producing properties.
About The Metals Company
The Metals Company is an explorer of lower-impact battery metals from seafloor polymetallic nodules, on a dual mission: (1) supply metals for the global energy transition with the least possible negative impacts on planet and people and (2) trace, recover and recycle the metals we supply to help create a metal commons that can be used in perpetuity. The Company through its subsidiaries holds exploration and commercial rights to three polymetallic nodule contract areas in the Clarion Clipperton Zone of the Pacific Ocean regulated by the International Seabed Authority and sponsored by the governments of Nauru, Kiribati and the Kingdom of Tonga.
