PERTH (miningweekly.com) – ASX-listed Hannans has inked a heads of agreement with privately held Greenhouse Investments granting Hannans the right to enter the lithium battery (LiB) recycling markets in the UK, Ireland, Italy and the Balkans, marking a shift change for the junior metals developer.
In addition, Hannans has secured Greenhouse’s market intelligence and relationships in these regions.
Hannans said on Tuesday that the Greenhouse agreement more than doubles the company’s addressable market for scrap and end-of-life batteries.
Hannans in late 2021 struck an agreement with Critical Metals providing it with a right to commercialise an LiB recycling technology in Sweden, Norway, Finland and Denmark, and by combining these territories with the UK, Ireland, Italy and the Balkans, Hannans has established tremendous leverage to the rapidly grow the European LiB recycling sector, and specifically in countries with the highest penetration rates of electric vehicles, Hannans said.
“We are extremely pleased to deliver this increase in size and scope of our recycling opportunity for Hannans shareholders. It is abundantly clear that Europe needs a scalable, safe and sustainable lithium battery recycling solution,” Hannans executive director Damian Hicks said.
“We believe the technology we will hold sub-licences to will help stakeholders in our licensed jurisdictions meet their circular economy ambitions and legal obligations to recycle. We are now focused on increasing Hannans' business development activities and forming long-term mutually beneficial relationships with the European lithium battery supply chain participants.”
Under the terms of the agreement, Hannans would issue Greenhouse with more than 539.5-million shares, subject to shareholder approval in late March or early April that would allow shareholders to consider a change in Hannans’ activities, because of this transaction.
As part of a re-compliance process, Hannans is required to undertake a capital consolidation, with the company announcing a planned 1.2-for-1 consolidation, subject to shareholder approval.
The company is hoping to raise A$2.5-million, at a price of A$0.035 a share, to fund its expansion plans and to meet ASX conditions for re-complying. The capital raise will be completed by way of a general offer to the public, with existing Hannans shareholders to be given priority.