PERTH (miningweekly.com) – Kaolin producer Suvo Strategic Minerals has announced plans to acquire a 26% interest in green high purity alumina (HPA) technology.
The ASX-listed company will, through a private placement, acquire a stake in Australian proprietary company Dingo, which is aiming to produce HPA from recycled aluminium feedstock.
The placement will see Suvo acquire 220 000 shares at a price of A$1 each.
In addition to the placement, Dingo is granting Suvo a clear pathway to acquire up to 76% of the issued capital of the company, subject to various milestones being met. At the end of the Stage 3 earn-in, Suvo will have an exclusive period to negotiate a share purchase acquisition of the remaining shares on issue in Dingo, subject to any further regulatory approvals.
Dingo’s intellectual property (IP) is currently at the concept study level and Dingo intends to use funds from the placement to support the advancement of a scoping study, as well as for general working capital.
“The decision to acquire an initial 26% interest in Dingo is in line with Suvo’s commitment to building a resilient and sustainable commodity offering from its industrial minerals assets and novel industrial processes,” said Suvo executive chairperson Henk Ludik.
“The staged structure for Suvo to increase its interest in Dingo presents a low risk approach for shareholders as we prove up Dingo’s proprietary technology to produce this critical mineral.
“Recent market reports show that demand for HPA in powder form is expected to grow to 187 000 t/y by 2028, with this growth likely to be constrained by supply limitations, leading to a potential spike in prices as supply struggles to keep pace with demand.
“HPA is a commodity derived from kaolin production. Suvo has extensive operations in the development, production and sale of kaolin products and believes the acquisition will generate synergies with Suvo’s existing technical and commercial expertise.
“Dingo’s bespoke IP offers a potential pathway for Suvo to produce a sustainable source of HPA with a low carbon footprint, compared to traditional HPA production, and take advantage of rising demand and prices,” said Ludik.