ASHLAND, Ky. (KT) — Braidy Industries says it has spent $15.7 million on construction so far and is on schedule to begin “full commercial operation in 2021.”
The company also said in a status update this week that it extended fundraising deadline by three months to March 31 for potential investors.
"Braidy Industries has had tremendous success on Netcapital, raising over $12 million so far," an update sent out through Netcapital said.
The $15.7 million spent includes purchasing the land where the mill will be built, design and engineering plans, procurement of necessary permits and other governmental approvals.
The expenditures also cover site preparation work and the June 2018 groundbreaking, negotiating engineering, procurement and construction agreements, working with utilities to ensure the site will have the requisite electric, water and gas service once it is operational, and professional services.
The document outlines capital requirements and strategy to build Braidy Atlas.
"Braidy currently anticipates that the cost to construct the mill will total approximately $1.68 billion, and Braidy is currently in the process of raising approximately $500 million in equity capital and approximately $1.2 billion in debt capital," the update said.
Regarding debt capital, the company notes it is applying for debt financing for construction of the mill through the U.S. Department of Energy's Advanced Technology Vehicle Manufacturing loan program for up to $800,000,000. The loan would provide for low-cost financing, according to Braidy.
The company is also seeking $360 million in export credit agency financing with KFW Bank and Euler Hermes in Germany.
"We are also in discussions with a number of global financial institutions for industrial project financing consisting of both bank debt, bridge loans, and permanent financing for any remaining portion of our debt financing requirements, or all of the financing requirements," the update states.
Management is also exploring merger and acquisition opportunities related to scaling its mill operations and accelerating the growth of its powder metallurgy businesses, the update said.
The company is trying to build a $1.68 billion aluminum mill in northeastern Kentucky backed by the Kentucky legislature’s unanimous approval of a $15 million investment. It is expected to bring 600 high-paying jobs to the economically weakened part of the state.