Zinnwald Lithium PLC Ocean Partners UK Ltd to acquire Erris Zinc Ltd (6580S)
13 Março 2023 - 4:00AM
UK Regulatory
TIDMZNWD
RNS Number : 6580S
Zinnwald Lithium PLC
13 March 2023
Zinnwald Lithium plc / EPIC: ZNWD.L / Market: AIM / Sector:
Mining
13 March 2023
Zinnwald Lithium plc
("Zinnwald Lithium" or the "Company")
Ocean Partners UK Limited to acquire Erris Zinc Ltd
Zinnwald Lithium plc, the German focused lithium development
company , is pleased to announce the signing of a Heads of Terms
Agreement ("HOT") with Ocean Partners UK Ltd ("Ocean"), a trader of
base metal ores and concentrates and parent company to Shanoon
Resources Ltd ("Shanoon"), owner of the Galmoy Prospecting Licence
in Ireland, for it to acquire Erris Zinc Ltd, the Company's 100%
owned subsidiary that owns the Abbeytown Zinc License in Ireland
("Abbeytown").
Whilst the HOT is non-binding, it is anticipated that a
definitive legal agreement reflecting these terms will be entered
into between the Company and Ocean within the next month. This
legal agreement shall also be subject to final approval by the
Irish Geoscience Regulation Office.
HIGHLIGHTS
-- Ocean to acquire Erris Zinc Ltd for EUR1
-- Ocean commits to spend EUR130,000 to end 2025 or Zinnwald can effect buy-back
-- Zinnwald to receive 1% Net Smelter Royalty and EUR200,000
cash payment six months after commencement of commercial production
from Abbeytown
Zinnwald Lithium CEO, Anton du Plessis, said: "We are pleased to
have found a partner to develop Abbeytown whilst we focus on
advancing our Zinnwald Lithium Project towards the planned
completion of a Bankable Feasibility Study at the end of 2023 and
commencement of production in Q4 2026. As the core asset that
underpinned our original listing on AIM in 2017, our 2018/19
exploration work identified excellent mineralisation at Abbeytown
in the original drill holes, while the metallurgical review showed
that a good quality concentrate could be produced. We look forward
to Ocean taking the exploration further and, hopefully in the
longer term, into production."
Shanoon Resources MD, Alan Buckley, said : "We are delighted
that through Ocean we have been able to secure the rights to this
highly prospective licence with high priority drilling targets
identified."
DETAILS
Background
Zinnwald's subsidiary, Erris Zinc Ltd, owns the Abbeytown
License in Ireland (PL 3735). The licence was originally granted
for six years in 2013 and in Q3 2019 Erris Zinc Ltd extended this
licence for a further six years. In 2021, following its acquisition
of 100% of Deutsche Lithium GmbH and its Zinnwald Lithium Project,
the Group elected to put its Irish operations on care and
maintenance whilst it looked for a joint venture partner to take
the asset forward. In 2021, the Company undertook the required
further exploration work to maintain the licence in good standing,
but also fully impaired the carrying value of this asset in its
2021 accounts.
HOT
Under the terms of the HOT, Ocean shall acquire 100% of Erris
Zinc Ltd on the following basis:
-- Ocean shall acquire Erris Zinc Ltd, which owns the Abbeytown license, for EUR1
-- Pre-pay to Erris Zinc the minimum license spend due in 2023 of EUR30,000;
-- Commit to finance a further total license spend of EUR100,000 over 2024 and 2025.
-- If this additional spend is not incurred by March 2025,
Zinnwald shall have the right to buy-back Erris Zinc for EUR1
-- Ocean shall issue a 1% Net Smelter Royalty to Zinnwald; and
-- Ocean shall make a EUR200,000 cash payment to Zinnwald, due
six months after the start of commercial production from the
Abbeytown license area.
Ocean Partners UK Limited was founded in 2005 and is a global
trader of base metal ores and concentrates. Its subsidiary, Shanoon
Resources Ltd ("Shanoon"), is a mining and exploration company
founded in 2016 with the objective of sourcing and developing
mining projects in Ireland. Its current portfolio includes the
Galmoy zinc and lead mine in County Kilkenny, which it is in the
process of re-developing.
. *ENDS*
For further information visit www.zinnwaldlithium.com or
contact:
Anton du Plessis Zinnwald Lithium info@zinnwaldlithium.com
Cherif Rifaat plc
David Hart Allenby Capital
Dan Dearden-Williams (Nominated Adviser) +44 (0) 20 3328 5656
---------------------- --------------------------------
Michael Seabrook Oberon Capital Ltd
Adam Pollock (Joint Broker) +44 (0) 20 3179 5300
---------------------- --------------------------------
Tamesis Partner
Richard Greenfield LLP
Charles Bendon (Joint Broker) +44 (0) 20 3882 2868
---------------------- --------------------------------
Isabel de Salis St Brides Partners zinnwald@stbridespartners.co.uk
Paul Dulieu (Financial PR)
---------------------- --------------------------------
Notes
AIM quoted Zinnwald Lithium plc (EPIC: ZNWD.L) is focussed on
becoming an important supplier of lithium hydroxide to Europe's
fast-growing battery sector. The Company owns 100% of the Zinnwald
Lithium Project in Germany, which has an approved mining licence,
is located in the heart of Europe's chemical and automotive
industries and has the potential to be one of Europe's more
advanced battery grade lithium projects.
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