🎈 Up Big Today: Find today's biggest gainers (some over 50%!) with our free screenerTry Stock Screener

European Lithium's SPAC Deal with Sizzle Aims for NASDAQ Debut

EditorHari Govind
Published 27/11/2023, 03:34
© Reuters
BMWG
-
EUR
-
VUL
-
CRML
-
CMG
-

European Lithium's Chairman, Tony Sage, is in the final stages of securing a SPAC (Special Purpose Acquisition Company) deal with Sizzle to introduce Critical Minerals Corp (CMC) to the NASDAQ stock exchange. This move comes as part of a broader strategy to maintain additional mining assets listed on the Australian Securities Exchange (ASX).

Despite some investors withdrawing from Sizzle’s trust fund following the merger announcement—a situation that has led to reduced expected proceeds—Sage is undeterred. He is actively seeking to raise an additional $60-70 million, pending approval from the U.S. Securities and Exchange Commission (SEC). The funds are earmarked to support CMC's growth initiatives.

DRA Projects, a consultancy firm, has conducted a feasibility study on the Wolfsberg lithium project in Austria. The report suggests that the site could potentially produce 8,800 tonnes of lithium hydroxide annually over a span of 14 years. While the capital expenditure (capex) required is significant, the projected net value of the operation is substantial, indicating a promising outlook for the venture.

The company's strategy includes a joint venture with Obeikan in Saudi Arabia, where lithium spodumene concentrate from Austria will be shipped for processing. This approach is not only expected to leverage efficiencies but also aligns with BMW’s environmental, social, and governance (ESG) commitments. However, it may lead to potential re-ratings of the supply chain.

In the backdrop of these corporate developments, Sage has experienced personal financial setbacks, including losing ownership of Perth Glory. Despite these challenges, he remains optimistic about the prospects of CMC's NASDAQ listing and its potential to enhance shareholder value.

The deal unfolds amid other industry movements such as Vulcan Energy's operational progress and Infinity Lithium's grant acquisition in Spain, which underscores the dynamic nature of the lithium market and its importance in the global push towards renewable energy and electric vehicles.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.