PERTH (miningweekly.com) – ASX-listed Lithium Australia has announced plans to acquire Brisbane-based battery cathode developer Very Small Particle Company (VSPC).
Lithium Australia told shareholders on Thursday that its acquisition of VSPC would augment the company’s own advanced processing technologies around lithium extraction from waste material.
MD Adrian Griffin said that the proposed VSPC acquisition would provide Lithium Australia with "full circle" capability to deliver source material into the global lithium-ion battery supply chain, taking into account its greenfield and brownfield lithium exploration projects, its processing capabilities and ability to produce cathode material, as well as its stated aim to recycle lithium-ion batteries.
“Lithium Australia’s business strategy, which incorporates the development of disruptive extraction technology, has expanded from the processing of natural resources to include the recycling of battery materials. The company anticipates immense pressure on the supply of so-called energy metals such as lithium and cobalt in the near future, and battery recycling not only supports sustainability but may ultimately prove the cheapest source of those materials in years to come,” Griffin said.
Under the terms of the proposed acquisition, Lithium Australia is hoping to acquire a minimum 75% ownership in VSPC, offering the unlisted company’s shareholders 61.1-million fully paid ordinary shares in Lithium Australia and up to 30.5-million partly paid shares.
The transaction is subject to a number of conditions, including a successful due diligence, regulatory approvals, and a minimum acceptance of 75%.