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Avalon enters purchase and sale agreement to transfer the Separation Rapids and Lilypad Projects into Joint Venture with Sibelco
Avalon enters purchase and sale agreement to transfer the Separation Rapids and Lilypad Projects ...
About this update from Avalon Advanced Materials Inc.
[{"type":"text","content":"\n \n \n \n Avalon enters purchase and sale agreement to transfer the Separation Rapids and Lilypad Projects into Joint Venture with Sibelco\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n \n TORONTO\n \n \n ,\n \n \n Nov. 2, 2023\n \n \n /CNW/ - Further to its news release dated\n \n June 15, 2023\n \n , and consistent with its strategic objective to build\n \n Ontario's\n \n first vertically integrated lithium supply chain serving the North American EV battery market,\n \n \n \n Avalon Advanced Materials Inc.\n \n \n \n (TSX: AVL) and (OTCQB: AVLNF) (\"Avalon\" or the \"Company\") is pleased to announce that it has entered into a definitive Tripartite Purchase and Sale Agreement (the \"Purchase and Sale Agreement\") with SCR-Sibelco NV (\"Sibelco\") and Separation Rapids Ltd. (\"SRL\"), to provide for the transfer of the Company's Separation Rapids and Lilypad projects to SRL. SRL will be a joint venture entity co-owned by Sibelco (60%) and Avalon (40%). Sibelco will be the operator of SRL.\n \n \n \n \n \n \n \n \n \n Closing of the sale remains subject to a number of conditions, including but not limited to, the execution of a definitive Joint Venture Company Shareholders Agreement (the \"JV Agreement\") between Avalon, Sibelco and SRL.\n \n \n Pursuant to the terms of the Purchase and Sale Agreement, Avalon agreed to transfer the Separation Rapids and Lilypad properties to SRL, including all personal property, assumed contracts, permits, books and records in consideration for approximately €23.2 million (\n \n C$34.1 million\n \n ), representing a 40% interest in the joint venture entity together with reimbursements of approximately\n \n C$903,000\n \n plus HST in funds expended by Avalon on the joint venture properties since the signing of a binding joint venture term sheet in\n \n June 2023\n \n . Sibelco's original commitment to the joint venture of €35.0 million was reduced by approximately €134,000 in connection with an additional subscription of common shares of Avalon by Sibelco for this s...