Lease Terms for Critical Metals Recovery Facility
Released
Released
Announcement PDF
MTM Critical Metals Ltd
Australia:
Perth, Western Australia
USA:
Houston, Texas
ASX: MTM | OTCQB: MTMCF
ASX Release
15 May 2025
Lease Terms for MTM’s First U.S. Critical Metals Recovery Facility
MTM secures pre-permitted complex with discounted year one lease payment and option to acquire the property.
5-hectare, industrial site located in U.S. Gulf Coast Industrial Corridor (Chambers County, Texas, USA).
Site secured under a lease with an option to acquire; final lease agreement terms to be confirmed upon completion
of the vendor’s property settlement, expected in the near term.
Permitted site – Existing industrial waste permit significantly de-risks regulatory approvals and accelerates timeline
for metal recovery operations.
Sublease rights – MTM can sublease any part of the premises at its discretion. The Company retains full commercial
flexibility in structuring sublease arrangements, including pricing and term, to maximise strategic value.
MTM Critical Metals Limited (“MTM” or the “Company”) (ASX: MTM; OTCQB: MTMCF) has announced that it has secured
a strategic, pre-permitted 5-hectare industrial site in Chambers County, Texas, USA which will host MTM’s first U.S.based Flash Joule Heating (FJH) metal recovery plant and serve as the base for future commercial operations and R&D
activities as part of a new Technology Campus. MTM has been able to secure the lease with a discounted rental rate in
year 1 and an option to acquire the premises in year 6.
The site is located within one of Texas’ most established heavy industrial corridors and is surrounded by legacy waste
processing operations. Its strategic location near Interstate 10 and the Houston Ship Channel provides MTM with efficient
access to global logistics networks, industrial suppliers, and downstream customers. The property is pre-permitted for
industrial waste handling and processing and is equipped with substantial existing infrastructure, including sealed access
roads, onsite power, wastewater management systems, perimeter security fencing, and combined office and warehouse
facilities. Additionally, the location offers access to low-cost industrial electricity and is ideally positioned to tap into the
Houston region’s skilled industrial workforce.
Permitting Advantage
A key strategic benefit of the site is its existing industrial waste handling and processing permit. Securing a fully permitted
site eliminates the lengthy, costly, and often uncertain process typically associated with greenfield environmental approvals,
providing MTM with a significant execution and timing advantage. It enables the Company to accelerate deployment of its
FJH metal recovery operations while avoiding regulatory delays. This permitting head start also reduces execution risk and
supports MTM’s near-term commercialisation timeline.
LEASE DETAILS AND FINALISATION
The site has been secured under a long-term lease agreement, which includes a structured purchase option exercisable at
MTM’s discretion. The details of the lease arrangement are currently contained within a heads of terms agreement and will
be formalised in a lease agreement in due course once the owner has completed the acquisition of the property. Details of
the lease terms are as follows
Lease term – 15 years (plus 2 x 5-year options);
Rental Payments – are based on market standard rates for industrial property in the Gulf Coast region of Texas with
fixed increases in respect of 3% per annum. The first year’s lease cost has been discounted by 30% to subsequent
years;
Termination provision – lease can be terminated at the end of 10 years with a penalty of approximately 9 months
lease payments (10 month notice period required for termination);
Option to purchase – the option to purchase the land can be exercised between months 61 and 67 of the lease.
The option value is commercial in confidence because the buyer of the premises has not closed their negotiations
with the seller and this may jeopardise their ongoing negotiations. MTM can confirm that the proposed option
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exercise value is in line with market price given normal long term value escalation of real estate in Texas and that
this option would not be exercised if the financial rational for this was not justified;
Sublease rights – MTM can sublease any part of the premises at its discretion. The Company retains full commercial
flexibility in structuring sublease arrangements, including pricing and term, to maximise strategic value and align
with its broader Technology Campus vision;
The lease will contain customary provisions regarding access, use, insurance, maintenance, environmental
compliance, and termination, and will be governed by the laws of the State of Texas, subject to final due diligence
and board approval.
Figure 1: Newly secured Chambers County site, featuring existing industrial facilities and infrastructure
FUTURE EXPANSION STRATEGY
The secured site will act as the cornerstone of MTM’s U.S. Technology Campus, hosting both the 1 tonne-per-day (1TPD)
demonstration plant, with future expansion capacity, and a dedicated research and development facility. With its ample size
and pre-approved permits, the property is well-suited for expansion into commercial-scale operations. In the event of a
suitable collaboration partner agreeing to work with us, they could co-located with MTM and a sub-lease arrangement would
be negotiated.
In addition to supporting current research and development operations, the site offers flexibility for future processing
modules, pilot programs and downstream refining innovations as MTM continues to grow its technology portfolio.
Strategically located within a permitted industrial corridor, the site presents opportunities for collaboration with neighbouring
industrial operators. MTM is actively exploring options to co-locate complementary processing activities or shared
infrastructure to drive capital efficiency.
With available land and sufficient utility capacity, the property also has potential to accommodate future partner infrastructure
or joint ventures, enabling modular scale-up and shared processing initiatives with strategic collaborators.
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ASX: MTM | OTCQB: MTMCF
The Chambers County facility is expected to be the first of multiple sites under consideration across Texas and Louisiana
as part of MTM’s broader U.S. growth strategy.
Figure 2: Map showing the site’s strategic location in Texas – situated east of Houston in the heavy industrial Gulf Coast corridor with
easy highway and port access.
This announcement has been authorised for release by the Board of Directors.
For further information, please contact:
Michael Walshe
Managing Director & CEO
MTM Critical Metals Ltd
info@mtmcriticalmetals.com.au
+61 8 6391 0112
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ASX: MTM | OTCQB: MTMCF
ABOUT MTM CRITICAL METALS LIMITED
MTM Critical Metals Limited (ABN 27 645 885 463), is an ASX & OTCQB-listed company with management teams in Perth, Western
Australia, and Texas, USA, and specialises in advanced metal recovery technologies. MTM’s 100%-owned USA subsidiary Flash Metals
USA Inc is based in Texas, USA. MTM possess exclusive licensing rights to the innovative Flash Joule Heating technology, a cutting-edge
metal recovery and mineral processing method developed by esteemed researchers at Rice University, USA.
Flash Joule Heating (FJH) is an advanced electrothermal process that enhances metal recovery and mineral processing compared to
traditional methods. By rapidly heating materials in a controlled atmosphere, FJH efficiently extracts metals like lithium from spodumene,
gallium from scrap, and gold from E-Waste, among others. This technology has the potential to revolutionise metal recovery by reducing
energy consumption, reagent use, and waste, offering a more economical and environmentally friendly alternative.
To learn more, visit:
Website:
https://www.mtmcriticalmetals.com.au/
MTM’s Investor Hub:
https://investorhub.mtmcriticalmetals.com.au/
Contact:
info@mtmmetals.com.au
USA:
12 Greenway Plaza, Suite 1100, Houston, Texas USA 77046
Australia:
Suite 2, 38 Colin Street, West Perth, Western Australia 6005
|
+61 8 6391 0112
CAUTIONARY STATEMENT REGARDING VALUES & FORWARD-LOOKING INFORMATION
The figures, valuations, forecasts, estimates, opinions and projections contained herein involve elements of subjective judgment and
analysis and assumption. MTM Critical Metals does not accept any liability in relation to any such matters, or to inform the Recipient of
any matter arising or coming to the company’s notice after the date of this document which may affect any matter referred to herein. Any
opinions expressed in this material are subject to change without notice, including as a result of using different assumptions and criteria.
This document may contain forward-looking statements. Forward-looking statements are often, but not always, identified by the use of
words such as “seek”, “anticipate”, “believe”, “plan”, “expect”, and “intend” and statements than an event or result “may”, “will”, “should”,
“could”, or “might” occur or be achieved and other similar expressions. Forward-looking information is subject to business, legal and
economic risks and uncertainties and other factors that could cause actual results to differ materially from those contained in forwardlooking statements. Such factors include, among other things, risks relating to property interests, the global economic climate, commodity
prices, sovereign and legal risks, and environmental risks. Forward-looking statements are based upon estimates and opinions at the
date the statements are made. MTM Critical Metals undertakes no obligation to update these forward-looking statements for events or
circumstances that occur subsequent to such dates or to update or keep current any of the information contained herein. The Recipient
should not place undue reliance upon forward-looking statements. Any estimates or projections as to events that may occur in the future
(including projections of revenue, expense, net income and performance) are based upon the best judgment of MTM Critical Metals from
information available as of the date of this document. There is no guarantee that any of these estimates or projections will be achieved.
Actual results will vary from the projections and such variations may be material. Nothing contained herein is, or shall be relied upon as,
a promise or representation as to the past or future. MTM Critical Metals, its affiliates, directors, employees and/or agents expressly
disclaim any and all liability relating or resulting from the use of all or any part of this document or any of the information contained
herein.
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