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  4. European Lithium announces merger with Sizzle Acquisition Corp to form Critical Metals Corp

European Lithium announces merger with Sizzle Acquisition Corp to form Critical Metals Corp

Published by , Editorial Assistant
Global Mining Review,

European Lithium AT Limited, a wholly owned subsidiary of European Lithium Ltd, and Sizzle Acquisition Corp, a publicly traded special purpose acquisition company, have announced that they have entered into a definitive agreement for a business combination that will result in the formation of Critical Metals Corp., which is expected to be a leading lithium mining company. Upon closing, subject to approval by European Lithium and Sizzle stockholders and other customary requirements, Critical Metals intends to be listed on Nasdaq under the symbol “CRML,” which is expected to occur in 1H23.

Upon closing of the business combination, Critical Metals will own European Lithium’s Wolfsberg Lithium project, which is currently owned by European Lithium’s wholly owned subsidiary, European Lithium AT (Investments) Limited, as well as a 20% interest in additional Austrian projects currently held by European Lithium. European Lithium will be the largest shareholder of Critical Metals and is expected to continue to trade on ASX. The board of Critical Metals is expected to comprise a total of five members, four of whom will be nominees of European Lithium and one of whom will be a nominee of Sizzle. Critical Metals will be led by Executive Chairman, Tony Sage, and Chief Executive Officer, Dietrich Wanke.

In order to support the rapidly growing EV supply chain in Europe, the project is expected to become the region’s first major source of battery-grade lithium concentrate, filling a critical gap in the European EV battery supply chain. Located in Wolfsberg, Austria, in the heart of this supply chain, the project is expected to be uniquely positioned to capitalise on three key competitive differentiators:

  • The first licensed lithium mine in Europe – The project holds an exclusive license to repurpose a former Austrian government constructed lithium mine that contains a substantial amount of battery-grade lithium, minimising the overall environmental impact of the discovery and processes. 
  • Key strategic offtake MoU – European Lithium has entered into a MoU for a key customer arrangement with BMW AG, which upon execution of definitive agreements would create one of the largest direct pre-pays from an OEM in Europe in the lithium mining industry of US$15 million.
  • Definitive feasibility study (DFS) expected in early 2023 – The Project is aiming to supply lithium concentrate at commercial scale and be economically viable, as per its completed pre-feasibility study (PFS), with the results of DRA Global’s final DFS expected in 1Q23.

Backed by considerable legislative support worldwide for cleaner transportation, automakers and battery manufacturers continue to ramp up production of electric vehicles (EVs) to meet overwhelming consumer demand, creating a critical need for additional sources of battery-grade lithium – an essential material for EV batteries.

Through its pilot plant constructed by independent consultants Dorfner Anzaplan in Austria, European Lithium previously demonstrated the project’s expected ability to supply battery-grade lithium concentrate through the processing of spodumene. The results from the pilot plant demonstrated that the project can supply battery-grade lithium at 99.6% of lithium carbonate grade.

Critical Metals Executive Chairman, Tony Sage, said:

“We are enthusiastic to partner with the Sizzle team to become a publicly traded company on Nasdaq and are thrilled to have Carolyn Trabuco, Sizzle’s lead independent director, join our board.”

“The need for additional battery-grade lithium in Europe will only continue to accelerate as demand for EVs continues to outstrip supply. The project is poised to become the first major source of battery-grade lithium concentrate in Europe, the world’s leading EV market, capable of supporting the production of approximately 200 000 EVs per year. The funds raised though this transaction will provide us with the resources anticipated to be required to advance construction and commissioning of the project. With the capital raised, in addition to the increased access to the public capital markets by listing on Nasdaq by means of the business combination, we believe we will be able to achieve our commercial goals by 2025.”

Steve Salis, CEO of Sizzle, commented:

“Critical Metals is poised to capitalise on significant macroeconomic tailwinds as Europe’s first source of battery-grade lithium. Backed by accelerating demand for establishing additional capacity for lithium supply in Europe, strategic global partners, and a seasoned management team with deep expertise in the mining space, we believe that the project provides a compelling and unique opportunity for US investors to have exposure to the European EV supply chain.”

Read the article online at: https://www.globalminingreview.com/mining/25102022/european-lithium-announces-merger-with-sizzle-acquisition-corp-to-form-critical-metals-corp/

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Lithium mining news European mining news