Aqua Metals has reached an agreement to lease its 136,000 square foot lead recycling plant in McCarran, Nevada along with additional purchase deposits to buy the facility.
The lead recycler has partnered with a lithium-ion battery recycler to continue its Aqualyzer program by adding operational and financial benefits while spurring future strategic prospects, the company said in a news release.
The agreement is designed so that Aqua Metals can maintain usage from part of the building while collecting lease proceeds beginning April 1, 2021. Lease payments amount to approximately $1.9mn throughout the contract period.
The deal allows for a triple net lease over two years, with the option to purchase the plant and corresponding land during that time.
Under the contract, the lessee will pay Aqua Metals deposits totaling $3.25mn indicating the former’s intention to complete the purchase. The purchase price of the site is $14.25mn if the option is used, and the sale finalizes by October 1, 2022. The price will rise to $15.25mn if the option is used and the sale concludes by March 31, 2023.
The lease-to-buy arrangement helps Aqua Metals operationally and financially as the company will continue using the plant, at no cost, for its research and product development initiatives, including lab operation. Savings are estimated at $4mn the company indicated.