Blackstone Minerals Limited (ASX: BSX) has signed a binding share purchase agreement with EcoPro Co. Limited. EcoPro’s subsidiary, EcoPro BM, is the world’s second largest and Korea’s largest nickel-rich cathode materials manufacturer.
The binding share purchase agreement outlines a firm commitment to raise A$6.8 million (before costs) through a placement of 40 million fully paid ordinary shares at an issue price of A$0.17 per share, which represents a 62% premium to Blackstone Minerals’ last traded price.
The binding agreement outlines an alliance structure whereby EcoPro and Blackstone Minerals will work in partnership to develop a downstream processing facility in association with Blackstone Minerals’ Ta Khoa Nickel-PGE Project in northern Vietnam.
Terms of the Agreement include:
Placement of 40 million shares at $0.17 per share, to be issued under the company’s existing placement capacity with shares to be issued and allotted by 16th April 2020.
EcoPro to appoint a director to the board of Blackstone Minerals;
Blackstone Minerals to exercise the binding option agreement to purchase AMR Nickel Limited’s 90% interest in the Ta Khoa Nickel-PGE Project
EcoPro and Blackstone Minerals to form an alliance whereby the next stage of the partnership will be an additional investment via a Joint Venture Agreement to develop the downstream processing infrastructure project in association with Blackstone Minerals’ Ta Khoa Nickel-PGE Project, Vietnam.
Blackstone Minerals’ Managing Director, Scott Williamson, said the investment strengthens his company’s alliance with EcoPro.
“Our Ta Khoa Nickel-PGE Project has the potential to deliver the critical raw materials required for EcoPro’s cathode manufacturing to meet the demand from the imminent electric vehicle (EV) revolution,” Mr Williamson said.
“We look forward to working towards the next stage of our partnership to develop the downstream processing facility in northern Vietnam.”
EcoPro’s Vice President of Strategic Planning Division, Sangwook Park, said it is very important for the company to secure stable and competitive metal materials in the fast-growing secondary battery and cathode active material business.
“EcoPro has therefore decided that it is a good time to invest in Blackstone.
“Based on that, we are looking forward to continuing with our partnership so that we can succeed in a downstream JV in the near future.”