A UK-based Lithium miner backed by a number of City figures including Crispin Odey is planning a £6m fundraising round, according to reports in the Sunday Times.
Northern Lithium is aiming to drill in the Northern Pennines, which has the potential to be a source for the silvery-white metal used in the production of electric vehicles (EV).
The firm, headquartered in County Durham and founded in 2017 by Panmure Liberum president Richard Morecombe, is planning to raise £6m before starting commercial production by 2027.
It said a recently completed 30-day drilling test at a northeastern site had exceeded expectations.
The company’s consortium of investors include Panmure Liberum chief Rich Ricchi, the Duke of Northumberland and the former head of the now-rebranded Aberdeen Asset Management.
Among them is also stockbroker Crispin Odey, whose eponymous hedge fund closed last year after allegations of sexual assault and harrassment against its founder. Odey denies the allegations and is sueing the Financial Times for libel over the reports.
In comments reported by the Sunday Times, Northern Lithium’s managing director Nick Pople said results of the drilling test were “a very important proof-of-concept stage.”
“The long-term pump tests that we have now performed have taken us to the next stage of confirming the commercial potential of this project,” he added.
Northern Lithium has won praise from government ministers in the past for its work. Last year, it announced a partnership with the North West-based firm Evove as trials began to produce battery-grade lithium carbonate.
Lithium is seen as a critical mineral in the global energy transition, particularly for its use in the batteries recquired to build EVs. Demand is forecast to increase by nearly 500 per cent by 2050 but analysis has shown European carmakers are well behind in securing enough of the raw material to hit targets.