Green Technology Metals (ASX:GT1,OTC Pink:GTMLF) announced corporate subscription and framework agreements with leading South Korean electric vehicle (EV) battery materials producer EcoPro Innovation.
In a Tuesday (August 20) press release, Green Technology said that under the subscription agreement EcoPro has agreed to invest AU$8 million in the company across two tranches by acquiring 64 million ordinary shares for AU$0.125 each.
Meanwhile, the framework agreement lays the groundwork for the companies to formalise partnerships.
Green Technology and EcoPro intend to negotiate an agreement to execute and co-fund a prefeasibility study on a proposed lithium conversion facility in Ontario, Canada. It will potentially lead to the formation of a joint venture through which the companies will complete a definitive feasibility study for the facility and co-develop the operation.
They will also work on setting up binding joint venture agreements for Green Technology’s Seymour and Root projects.
“Our journey with EcoPro Innovation has been over 12 months in the making, during which time our teams have dedicated countless hours working jointly on understanding and expanding on GT1’s strategy to be the first integrated lithium chemical supplier in Ontario,” said Cameron Henry, managing director of Green Technology.
“EcoPro stands out as a top-tier strategic partner, bringing invaluable experience in owning and operating, not only successful Lithium Conversion facilities but also Nickel Pre-cursor and Cathode Active Material facilities globally.”
Green Technology said that the investment and potential partnerships with EcoPro will allow it to move forward with its integrated strategy to become a major North American lithium chemical supplier.
EcoPro has extensive experience in lithium hydroxide production and holds patented extraction technology. The firm has been evaluating the North American market for some time and looks forward to a relationship with Green Technology.
“Our teams have dedicated significant effort to understanding GT1’s development strategy and recognize the strategic value of their assets, which are located in a prime location with a well-established end-to-end supply chain, and the ample government support,” commented Yoon Tae (Anthony) Kim, CEO and president of EcoPro.
Green Technology and EcoPro have submitted a joint application to Invest Ontario seeking funding for the potential lithium conversion facility. They believe the operation would boost the province’s place in the EV supply chain.
The companies also aim to secure complementary funding through the Strategic Innovation Fund. Green Technology said this engagement “is crucial to ensuring that the project has the necessary resources to move forward rapidly and to maximize the economic and environmental benefits for both Ontario and Canada as a whole.”
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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