Electra Battery Materials (ELBM) said Friday it plans to launch a "best-efforts" private placement for the sale of a minimum of 40 million units at $0.75 per unit for gross proceeds of at least $30 million.

The offering is related to financing its ongoing financial restructuring with holders of its senior senior secured convertible notes, the company said.

Each unit consists of a common share and a purchase warrant entitling the holder to purchase a common share at $1.25. The company said it has also agreed to grant the agents an option to sell up to an additional 15% of the offering.

In a separate statement, Electra said it signed a term sheet for C$17.5 million ($12.64 million) in proposed funding from provincial agency Invest Ontario to support the construction of its cobalt sulfate refinery in Temiskaming Shores

Once completed, Electra's refinery will produce 6,500 metric tons of battery-grade cobalt sulfate annually, enough to support production of up to 1 million electric vehicles per year, the company said.

The company's shares were up more than 11% in recent trading on Friday.

Price: 1.08, Change: +0.23, Percent Change: +26.58