The share price of Erris Resources rose by as much as 80% on London’s Aim on Thursday as the company resumed trading on the stock exchange, following last week’s news that it would buy the late-stage Zinnwald lithium project, in Germany.
Erris announced on Thursday that it had agreed terms with Bacanora Lithium to acquire a 50% shareholding in Deutsche Lithium, which owns the Zinnwald project.
“The Zinnwald lithium project represents a compelling opportunity for investors to gain exposure to the fast-growing European lithium market, so we are very excited to be moving forward with the transaction,” said Erris Resources CEO Anton du Plessis.
Upon completion of the acquisition, the company’s new strategy would be to advance Zinnwald towards construction and operation of the mine. The company would trade under the name of Zinnwald Lithium.
The Loch Tay gold project, in Scotland, would be divested. As an early stage exploration project, the Erris board said it believed that it could not support the cost of a listed company. Loch Tay would be spun out in Erris Gold Resources to the existing shareholders who have funded the project to date. Erris Gold would have an initial cash balance of €400 000, together with the business, assets and existing Erris operational staff, including David Hall and Aiden Lavelle.
The company would retain its Abbeytown project, in Ireland, and its Brännberg gold project, in Sweden.
Erris' stock traded as high at 11p a share on Thursday. By the afternoon, the company traded at 8p a share.