Green Technology Metals Ltd (ASX:GT1, OTC:GTMLF) has taken a major step on its path to become the first integrated lithium producer in Ontario, Canada, executing a “transformational” framework agreement and $8 million subscription investment with world-leading South Korean EV battery metals producer EcoPro Innovation Co., Ltd.
Shares in GT1 have traded as much as 48.45% higher this morning on the ASX to A$0.095 per share following the company’s announcement.
GT1 is building the pre-eminent vertically integrated lithium business in Ontario as it seeks to become a major North American lithium chemical supplier.
The partnership validates GT1’s strategy, with EcoPro bringing extensive experience in lithium hydroxide production plus patented lithium extraction technology.
The agreements cover proposals for upstream and downstream activities — mining and raw material extraction and processing and conversion — and includes the development of potential mines and the proposed lithium conversion facility.
EcoPro invests $8 million
The $8 million corporate equity investment was made at an issue price of $0.125 per share — a significant premium to the last closing price and a 40% premium to the 90-day volume weighted average share price (VWAP).
GT1 will issue EcoPro 64 million shares for the A$8 million investment, providing EcoPro with a stake of around 16.6% in GT1.
Proceeds will be allocated to a definitive feasibility study to reach a final investment decision (FID) on the Seymour Lithium Project and funding the Lithium Conversion Facility PFS as well as supporting general working capital.
Lithium Conversion Facility
Under the agreement, the parties have up to 12 months exclusive rights to negotiate and agree on staged asset-level investments in the Seymour and Root mine developments in anticipation of negotiation of joint venture agreements to drive project advancement.
Further, the agreements cover the Conversion Facility PFS Cooperation Agreement. This involves negotiating a comprehensive agreement outlining the execution and co-funding of a pre-feasibility study (PFS) on the proposed Lithium Conversion Facility, leading to the negotiation and formation of a joint venture for the completion of a definitive feasibility study (DFS) and the facility’s co-development.
“We have been evaluating the North American market for some time and have been in discussions with GT1 throughout this period,” said EcoPro Innovation CEO and president Yoon Tae (Anthony) Kim.
“Our teams have dedicated significant effort to understanding GT1’s development strategy and recognise the strategic value of their assets, which are located in a prime location with a well-established end-to-end supply chain, and ample government support.
“We are looking forward to strengthening a long-term relationship with GT1 and being a part of the strategy to become a major North American lithium chemical supplier in Canada.”
“Provides further validation”
GT1 managing director Cameron Henry said, “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.
“EcoPro has been assessing the North American market for some time and it’s with great optimism that we enter this new phase of GT1’s development and we look forward to finalising these significant agreements and developing our projects in partnership.
“EcoPro stands out as a top-tier strategic partner, bringing invaluable experience in owning and operating, not only successful lithium conversion facilities but also nickel pre-cursor and Cathode Active Material facilities globally.
“Their global scale and expertise in manufacturing and supplying battery-grade lithium chemicals will greatly benefit GT1 as we advance our integrated strategy in North America.
“This investment and partnering strategy now paves the way forward, both financially and technically, to continue with our development strategy.”
