A associated definitive merger settlement has been signed between the 2 corporations that may end result within the creation of a lithium mining firm, Vital Metals Corp., with a market worth of $972m, assuming no redemptions.
Upon closing of the merger, Vital Metals can be listed on Nasdaq within the first half of 2023.
Vital Metals will personal European Lithium’s 20% stake in Austrian initiatives, in addition to Wolfsberg Lithium Challenge, which is at the moment owned by European Lithium AT (Investments).
In line with the pre-feasibility research, the Wolfsberg mine will provide 10,500mtpa of lithium focus from 2025. This manufacturing is sufficient to energy round 200,000 EVs each year.
As a part of the settlement, European Lithium will roll its current fairness in European Lithium AT (Investments) into the mixed entity.
Upon completion of the deal, European Lithium could have almost 80% of the mixed firm’s professional forma fairness earlier than the influence of redemptions or additional capital raised.
Vital Metals govt chairman Tony Sage stated: “The funds raised by way of this transaction will present us with the sources anticipated to be required to advance building and commissioning of the Challenge.
“With the capital raised, along with the elevated entry to the general public capital markets by itemizing on Nasdaq by way of the enterprise mixture, we imagine we can obtain our industrial targets by 2025.”
Anticipated to grow to be Europe’s first main supply of battery-grade lithium focus, the Wolfsberg Lithium Challenge is able to supporting the manufacturing of 200,000 EVs yearly.
Sizzle vice chairman Jamie Karson stated: “The staff at Vital Metals has made important progress advancing Europe’s first licensed lithium mine and is nicely positioned to be the biggest provider of battery-grade lithium within the area.
“As strengthened by Vital Metals’ anticipated strategic association with BMW AG, we imagine the venture will play a key function in additional accelerating EV adoption in Europe.”
Topic to the approval of European Lithium and Sizzle stockholders and different customary closing circumstances, the deal is deliberate to finish within the first half of 2023.