Green Technology Metals Limited (ASX: GT1), a Canadian-focused multi-asset lithium business, has announced a corporate investment subscription of A$8M and a framework agreement executed with world leading South Korean EV battery metals producer, EcoPro Innovation Co., Ltd.
This will provide a foundation for partnering in co-operation across GT1’s projects as part of GT1’s strategy to become the first integrated lithium producer in Ontario.
Managing director, Cameron Henry, commented, “Our journey with EcoPro Innovation has been over 12 months in the making, during which time our teams have dedicated countless hours working jointly on understanding and expanding on GT1’s strategy to be the first integrated lithium chemical supplier in Ontario. Attracting a top-tier partner like EcoPro along with the investment at a premium provides further validation of our company, team, assets and ability to progress our assets and projects towards production.”
The executed agreements cover proposals for both upstream (mining and raw material extraction) and downstream (processing and conversion) activities, including the development of potential mines and the proposed lithium conversion facility through the following potential pathways:
- Corporate equity investment – at a significant premium to the last closing price and a 40% premium to the 90-day VWAP for an investment of A$8M via a two-tranche placement
- Asset level investment options – up to 12-months exclusive rights to negotiate and agree staged asset-level investments in the Seymour and Root mine developments in anticipation of negotiation of joint venture agreements to drive project advancement
- Conversion facility PFS cooperation agreement – negotiation of a comprehensive agreement outlining the execution and co-funding of a pre-feasibility study (PFS) on the proposed Lithium Conversion Facility in Canada, leading to the negotiation and formation of a joint venture for the completion of a definitive feasibility study (DFS) and co-development of the facility
In addition, the joint funding application has been submitted to Invest Ontario for government funding on the proposed lithium conversion facility.
EcoPro has stated that proceeds from m the subscription agreement will be allocated to a definitive feasibility study to reach a final investment decision (FID) on the Seymour Lithium project, funding the lithium conversion facility PFS, and supporting general working capital.
To find out more, please visit www.greentm.com.au
To read more articles like this, please visit www.theassay.com/news
