Rock Tech Lithium estimates Red Rock converter capital cost at C$596M
Preliminary results of Rock Tech's ongoing definitive feasibility study use a Red Rock design capacity of about 30,000 tonnes of lithium salts a year.
Mara Quinlan
Rock Tech Lithium Inc. CVERCK OTCMKTSRCKTF said on Wednesday in its Oct. 7 announcement that preliminary results from the Red Rock converter feasibility study put total capital costs at C$596 million. That estimate is nearly triple the proposed C$200 million anchor investment Rock Tech outlined in April, while the full project financing structure remains to be set.
Rock Tech shares closed at C$0.63 on the TSX Venture Exchange at 4 p.m. EDT on Tuesday, Oct. 6, before the announcement, according to CVERCK.
The Oct. 7 preliminary estimate comprises C$546 million in direct capital costs and C$50 million in owner's costs, with a tolerance of plus or minus 20 per cent. The proposed Ontario plant is designed to produce about 30,000 tonnes of lithium salts annually. The feasibility study began in June 2026 and uses an optimized converter design.
Rock Tech expects the final feasibility study in December 2026 to provide operating costs, project economics, an implementation schedule and financing details. The company expects construction to begin in the second half of 2027, subject to the final study and required project approvals.
"The Preliminary DFS Results are an important decision-making milestone for investing in a modern and scalable lithium production platform in Ontario," Rock Tech chief executive Mirco Wojnarowicz said in the release.
Rock Tech's April partnership announcement described a proposed C$200 million investment from an anchor partner under a broader project equity structure that had yet to be finalized. The company said it and other partners were expected to contribute further equity over time, leaving the amount and terms of the eventual financing open. Rock Tech said it would retain control of development, engineering and operations under the proposed partnership.
The same April plan contemplated up to C$30 million in initial funding from partners and government programs for engineering, environmental work, permitting and early site development. That funding was intended to advance the project toward an investment decision; Rock Tech did not present it as construction capital for the entire converter.
A Sept. 15 placement release reported C$5.31 million raised through two tranches of units, from an expanded offering of up to C$6 million. Each unit comprised one common share and half a share-purchase warrant. Rock Tech said the proceeds were earmarked for its Georgia Lake feasibility study, development of Red Rock and general working capital, without assigning a specific amount to the converter.
The new cost figure remains preliminary, and the company says it still requires engineering, technical and financial validation. It has given a broad cost tolerance but no operating cost or project return in this announcement, leaving investors without a completed economic case for the proposed plant.
The final Red Rock feasibility study is due in December 2026.
